Lennar Corp (NYSE:LEN) stock fell 0.59% (As on March 15, 11:41:42 AM UTC-4, Source: Google Finance) after the company reported a better-than-expected quarterly profit as high property prices helped offset supply shortages caused by rising material costs and a labor crunch. Home demand shot up across the United States when pandemic-era remote work trends allowed people to look for more affordable properties away from big cities, boosting the margins of homebuilders such as Lennar. Net earnings increased 18% to $597 million but decreased 23% to $615 million, excluding mark-to-market losses on technology investments in both years. Revenues from home sales increased 7% in the first quarter of 2023 to $6.1 billion from $5.7 billion in the first quarter of 2022. Revenues were higher primarily due to a 9% increase in the number of home deliveries. New home deliveries increased to 13,659 homes in the first quarter of 2023 from 12,538 homes first quarter of 2022. The average sales price of homes delivered was $448,000 in the first quarter of 2023, compared to $457,000 in the first quarter of 2022. The decrease in average sales price of homes delivered in the first quarter of 2023 compared to the same period last year was primarily due to pricing to market and product mix as a larger percentage of deliveries occurred in the Company’s Texas segment.

Moreover, operating earnings for the Financial Services segment were $79 million ($78 million net of noncontrolling interests) in the first quarter of 2023, compared to $91 million, in the first quarter of 2022. The decrease in operating earnings was primarily due to a lower profit per loan in the Company’s mortgage business as a result of lower lock volume. Operating loss for the Multifamily segment was $22 million in the first quarter of 2023, compared to operating earnings of $5 million in the first quarter of 2022. Operating loss for the Lennar Other segment was $40 million ($41 million net of noncontrolling interests) in the first quarter of 2023, compared to operating loss of $403 million in the first quarter of 2022

LEN in the first quarter of FY 23 has reported the adjusted earnings per share of $2.12, beating the analysts’ estimates for the adjusted earnings per share of $1.55, according to Refinitiv data. The company had reported the adjusted revenue growth of 5 percent to $6.49 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $5.93 billion.