Lennar Tops Q1 Results, Led by Strong Housing Demand

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Lennar Tops Q1 Results, Led by Strong Housing Demand
Credit: © Reuters.

By Yasin Ebrahim

Investing.com - Homebuilder Lennar reported fiscal first-quarter results that topped estimates as rising home prices boosted margins an offset costs at time when demand for first homes remained robust.   

Lennar (NYSE: LEN ) was up nearly 2% in after-hours trade.

Lennar reported fiscal first-quarter earnings of $2.70 a share, up from $2.04 a share a year earlier, on revenue of $6.2 billion, from $5.33 billion. Analysts were expecting earnings per share of $2.58 on revenues of $6.16 billion.

The better-than-expected results come as higher margins offset a jump in costs. 

"Both gross margin and net margin remained strong, even as materials costs and wages have increased, and home prices have continued to rise while remaining affordable even as interest rates have ticked up," the company said. 

Deliveries increased 2% to 12,538 homes, while new orders were up 1% to 15,747 homes.

Looking ahead to the second quarter, the company sees deliveries of 16,000-to-16,300, and average sales price of about $470,000.

For 2022, the company forecast 68,000 deliveries, average sales price in a range of $470,000 to $475,000.

The company authorized a new share buyback program of $2 billion.

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