Revenues and new home orders were up, but Lennar’s fourth-quarter profits fell 5.5 percent to $30.3 million (16 cents per share), the company reported Wednesday.
With operations in 17 states, the Florida-based home builder is currently marketing seven new-home communities in Valencia and owns 15 percent of The Newhall Land and Farming Co.
Earnings missed Wall Street expectations of 18 cents per share, but an 11-percent increase in revenues to $952.7 million outdistanced analysts’ $914 million target and share prices rose more than 7 percent on the news.
CEO Stuart Miller noted: “This our seventh consecutive quarter of profitability. Despite operating in a challenging real estate market, we achieved profitability in all of our business segments.”
Miller said the company benefited by investing in new, higher-end communities with bigger profit margins. Gross margins on home sales were $158.4 million, or 19.4 percent, versus $128.7 million , or 17.7%, a year earlier.
Revenues from home sales increased 13 percent to $816.5 million from $725.8 million in the fourth quarter of 2010, largely due to a 10 percent increase in home deliveries and 2-percent higher average sales prices.
Home deliveries increased to 3,359 for the quarter from 3,060 a year earlier, at an average price of $243,000 now and $238,000 a year ago.