(Reuters) - U.S. homebuilder Lennar Corp (LEN.N) on Monday reported a better-than-expected quarterly profit and forecast full-year deliveries above estimates, as home sales rebound due to the economy gradually reopening following coronavirs-led lockdowns.
As U.S. consumer confidence nudged up in May, analysts expect that the worst of the housing market slump is likely behind as the country gets back to work.
“Business rebounded significantly in May ... and this rebound has continued into the first two weeks of June,” Executive Chairman Stuart Miller said in a statement.
“While unemployment increased throughout the quarter due to impacts from the COVID-19 pandemic, customers moved from rental apartments and from densely populated areas to purchase homes,” he said adding that record-low interest rates are helping the recovery.
The company, which withdrew it full-year outlook in March, said it was now confident of achieving full-year deliveries in the range of 50,500 to 51,000 home, beating analysts’ expectation of 50,580 deliveries, according to IBES data from Refinitiv.
Net earnings attributable to the company rose to $517.4 million, or $1.65 per share, in the second quarter ended May 31, from $421.5 million, or $1.30 per share, a year earlier.
Revenue fell to $5.29 billion from $5.56 billion.
Analysts on average had expected Lennar to earn $1.18 per share on revenue $5.25 billion.
Reporting by Sanjana Shivdas and Ankit Ajmera in Bengaluru; Editing by Maju Samuel