Miami, FL, June 26, 2006--Homebuilder Lennar Corp. said Monday its second-quarter profit surged 33 percent on sharply higher sales, but the company lowered its full-year earnings outlook on an anticipated slowdown.
Second-quarter earnings rose to $324.7 million, or $2 per share, from $243.5 million, or $1.48 per share, during the same period last year.
Quarterly revenue soared 56 percent to $4.58 billion from $2.93 billion in the year-ago period as home sales climbed 53 percent to $4 billion from $2.6 billion. Sales were higher primarily due to a 40 percent increase in home deliveries and a 10 percent increase in the average sale prices of homes delivered in 2006.
Analysts were looking for earnings of $1.85 per share on sales of $3.87 billion, on average.
Despite the solid results, the company warned the second half of the year would be hurt by slower new orders and higher cancellation rates. Lennar lowered its full-year earnings guidance to a range of $8 to $8.25 per share from $9.25 per share.
Analysts are expecting full-year earnings of $8.15 per share.
The company's gross margin percentage on home sales fell 1.4 percent in the quarter, due to higher sales incentives that caused declines in the Central and West regions, but was partially offset by a slight increase in the East. Lennar plans to cut land costs, production costs and selling, general and administrative expenses to try to partially offset the increased incentives, President and Chief Executive Stuart Miller said in a statement.
