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Lennar forecasts strong Q2 profit on soaring demand for homes

Published 03/17/2022, 02:42 PM
Updated 03/17/2022, 02:46 PM
© 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/File Photo
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(Reuters) - U.S. homebuilder Lennar Corp (NYSE:LEN) 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.

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.

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

© 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/File Photo

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.

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