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Lennar Q2 results top estimates despite fall in home prices as high rates weigh

Published 2024-06-17, 04:54 p/m
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LEN
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Investing.com - Homebuilder Lennar reported Monday fiscal first-quarter results that topped Wall Street estimates even as home prices fell as higher interest rates continued to curb demand. 

Lennar Corporation (NYSE:LEN) fell nearly 2% in after-hours trade.

For the three months ended May 31, Lennar reported fiscal first-quarter earnings of $3.45 a share, up from $3.01 a diluted share a year earlier, on revenue of $8.77 billion, from $8.05B. Analysts were expecting earnings per share of $3.23 on revenues of $8.51B.

The beat on the top line was primarily driven by a 15% increase in the number of home deliveries, though partially offset by a 5% decrease in the average sales price of homes delivered, the company said.

New home deliveries increased to 19,690 homes in the Q2 from 17,074 homes in the same period a year earlier, but the average sales price of homes delivered fell to $426,000 in Q2 from $449,000 in Q2 2023. 

Looking ahead to the third quarter, the company sees deliveries of 20,500-to-21,000 homes, and average sales price of about $420,000 to $425,000.

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