Homebuilder Lennar Corporation (NYSE:LEN) reported Q1 results that surpassed Wall Street’s expectations, despite a decline in home prices due to the impact of higher interest rates on demand. However, shares fell more than 2% in pre-market today as the company forecasted worse-than-expected home deliveries.
For Q1, Lennar posted earnings of $3.45 per share, an increase from $3.01 per share in the same period last year, on revenue of $8.77 billion, up from $8.05 billion. Analysts had predicted earnings of $3.23 per share on revenue of $8.51 billion.
The revenue beat was largely attributed to a 15% increase in home deliveries, which was somewhat offset by a 5% decrease in the average sales price of homes. The company delivered 19,690 homes in the second quarter, up from 17,074 homes a year earlier, while the average sales price decreased to $426,000 from $449,000.
Looking forward to Q3, the company expects to deliver between 20,500 and 21,000 homes, with an average sales price ranging from $420,000 to $425,000.