Lennar Corp (NYSE:LEN) stock rose 3.82% (As on June 15, 11:39:04 AM UTC-4, Source: Google Finance) after the company raised its full-year forecast for home deliveries, as the homebuilder benefits from upbeat demand that far outpaced supply. Homebuilders are benefiting from the lack of existing home inventory and pent up demand they were unable to meet in previous years. Gross margins on home sales were $1.7 billion, or 22.5%, in the second quarter of 2023, compared to $2.4 billion, or 29.5%, in the second quarter of 2022. During the second quarter of 2023, gross margin decreased because revenues per square foot decreased year over year as the Company priced homes to market and costs per square foot increased primarily due to higher materials and labor costs. In addition, land costs increased year over year. At May 31, 2023, the Company had $4.0 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.6 billion revolving credit facility, thereby providing approximately $6.6 billion of available capacity.

LEN in the second quarter of FY 23 has reported the adjusted earnings per share of $3.01, beating the analysts’ estimates for the adjusted earnings per share of $2.32, according to Refinitiv data. The company had reported 4 percent fall in the adjusted revenue to $8.05 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $7.18 billion. Revenues were lower primarily due to a 7% decrease in average sales price of home deliveries, partially offset by a 3% increase in the number of home deliveries. New home deliveries increased to 17,074 homes in the second quarter of 2023 from 16,549 homes second quarter of 2022. The average sales price of homes delivered was $449,000 in the second quarter of 2023, compared to $483,000 in the second quarter of 2022. The decrease in average sales price of homes delivered in the second quarter of 2023 compared to the same period last year was primarily due to pricing to market and product mix. Operating earnings for the Financial Services segment were $112 million, net of noncontrolling interests, in the second quarter of 2023, compared to $104 million in the second quarter of 2022.

The Miami-based homebuilder raised its total home deliveries forecast for 2023 to 68,000 to 70,000 homes, up from its prior guidance of between 62,000 and 66,000 homes.