– U.S. homebuilder Lennar Corp 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.
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.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh Kuber)
