Lennar (LEN), one of the largest home builders in the U.S., has posted financial results that beat Wall Street forecasts on the top and bottom lines.
Driven by sales incentives, Lennar reported fiscal second-quarter earnings per share (EPS) of $3.45 U.S. and $8.80 billion U.S. in revenue.
That was better than consensus analyst forecasts that had called for EPS of $3.23 U.S. and revenue of $8.50 billion U.S.
The Miami, Florida-based company said it delivered 19,690 homes to customers in the quarter, up 15% from a year earlier. Lennar also reported 21,293 new orders, up 19% year-over-year.
However, while the number of units sold rose, prices fell. The average sale price of homes delivered was $426,000 U.S., down 5% from a year ago.
Lennar noted that mortgage rates rose through most of its fiscal second quarter, keeping potential homebuyers out of the market.
As for guidance, Lennar said that it expects new orders and deliveries in a range of 20,500 to 21,000 for the current quarter.
Analysts had expected 20,910 deliveries this quarter, which would be at the high end of Lennar’s range. Wall Street was also looking for 21,211 new orders.
Analysts also expected gross home sales margins in this quarter of 23.7%, which is above the 23% Lennar said it expects.
The company’s gross margin on home sales in its fiscal second quarter was 22.6%, in line with estimates.
The stock of Lennar is down 4% following the company’s latest financial results and forward guidance.
Prior to today (June 18), the company’s share price had risen 29% over the last 12 months to trade at $156.51 U.S. per share.
