Miami, FL, June 16--Homebuilder Lennar Corp. said on Tuesday that its second-quarter earnings rose 26 percent because of improved homebuilding gross margins and strong land sales.
The company also increased its earnings outlook for the year.
Lennar posted net income of $201.4 million or $1.22 per share, for the quarter ended May 31, up from $160.3 million or $1.02 per share, during the same period last year.
The results topped the $1.16 per share predicted by a Thomson First Call survey of analysts.
Revenue increased 11 percent to $2.3 billion from $2.1 billion a year ago.
Company officials said Lennar's large size allowed it to offset the impact of higher interest rates with cost reductions. Lennar is one of the largest homebuilders in the United States, along with Centex Corp. and Pulte Homes Inc.
"By paring down our land base in the wake of the Newhall acquisition last quarter, we have continued to position our balance sheet and our company for future growth and participation in consolidation activity in the industry," president and chief executive Stuart Miller said in a statement.
The company also increased its 2004 earnings outlook to $5.50 per share. Previously, Lennar had predicted year-end earnings of $5.30 per share.
