Lennar forecasts strong Q2 profit on soaring demand for homes

1 minute read

Signage is seen at The Collection at Morristown, a housing development by Lennar Corporation, in Morristown, New Jersey, U.S., November 13, 2021. REUTERS/Andrew Kelly/File Photo

Register now for FREE unlimited access to Reuters.com

March 17 (Reuters) - U.S. homebuilder Lennar Corp (LEN.N) on Thursday forecast current-quarter profit above Street estimates, as strong demand for costlier homes continue to buoy its performance amid the supply challenges faced by the industry.

Lennar, which beat first-quarter revenue estimates a day earlier on soaring home prices, also lifted its full-year homebuilding revenue outlook to $32 billion, up from its previous view of $31 billion. read more

However, the company cautioned that supply chain disruptions and inflation have sent prices of raw materials, specifically lumber, surging – leading to an increase in the number of days it takes to complete building a home.

Register now for FREE unlimited access to Reuters.com

"The ability to actually build and deliver homes has been slowed by the supply chain that is all but broken," Chairman Stuart Miller said.

Lennar, in a conference call with analysts, said it expects second-quarter earnings of $3.80 to $4.00 per share versus $3.75 per share expected by analysts.

Lennar said that it had filed a confidential Form 10 in February for SpinCo, its non-core business that it is spinning off, and initiated a process with the New York Stock Exchange to have its shares listed.

Register now for FREE unlimited access to Reuters.com
Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles.