MIAMI (AP) — Lennar's profit and revenue handily beat Wall Street expectations in the second quarter as it delivered more houses at higher prices and orders for new homes continued to climb.
Lennar Corp. CEO Stuart Miller said that the spring selling season was softer than expected, but that the housing recovery is continuing at a "slow and steady pace."
"The fundamentals of the homebuilding industry remain strong driven by high affordability levels, favorable monthly payment comparisons to rentals and overall supply shortages," he said Thursday in a statement.
Its shares slipped in morning trading.
For the three months ended May 31, the Miami company earned $137.7million, or 61 cents per share. That compares with $137.4 million, or 61 cents per share, a year ago.
The prior-year period included a gain of 18 cents per share from a partial reversal of the state deferred tax asset valuation allowance.
Analysts, on average, predicted earnings of 51 cents per share, according to a FactSet poll.
Revenue increased 27 percent to $1.82 billion from $1.43 billion, easily beating Wall Street's forecast of $1.68 billion.
Lennar's stock slipped 38 cents to $41.14 in morning trading.
Home deliveries rose 12 percent to 4,987 homes in the quarter, with the average price up 14 percent. New orders climbed 8 percent to 6,183 homes and backlog increased 11 percent to 6,858 homes.