Homebuilder Lennar’s profit jumps 18% on high prices
2023.03.14 16:58
© Reuters. FILE PHOTO: 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
(Reuters) -Homebuilder Lennar Corp (NYSE:) on Tuesday reported an 18% rise in first-quarter profit as high property prices offset supply snags caused by fewer homes being listed for sale amid a tough economy.
Shares of the company rose 2% to $102.5 after the bell.
Homebuilders benefited from flexible work arrangements during the pandemic driving up demand across the United States in a boost to the margins of companies such as Lennar and D.R. Horton Inc.
However, the industry is now staring at a slowdown as high interest rates have made borrowing more difficult, pushing potential buyers off the market.
Net income attributable to the company rose to $596.5 million, or $2.06 per share, in the quarter ended Feb. 28, from $503.6 million, or $1.69 per share, a year earlier.
Revenue rose about 5% to $6.49 billion.
