Lennar’s first-quarter profit tumbles as revenue growth beats Wall Street targets

By Maria Armental

Homebuilder Lennar Corp. reported a 16% stronger-than-expected quarterly revenue increase, but investment volatility weighed on bottom line.

First-quarter earnings fell to $503.6 million, or $1.69 per share, from $1 billion, or $3.20 per share, a year earlier.

Revenue reached $6.2 billion from $5.33 billion a year earlier.

Analysts polled by FactSet had expected earnings of $2.60 a share and $6.16 billion in sales.

“Our core operating performance in the first quarter reflects the continued strength of the housing market across the country,” Executive Chairman Stuart Miller said in a statement, adding that the pace of sales remained consistent throughout the quarter.

“Deliveries, although limited by supply chain disruption, were in line with guidance given at the start of the quarter,” he said.

Home deliveries rose 2% to 12,538, while new orders rose 1%. The dollar value of new orders increased 19% to $7.8 billion.

The average selling price of delivered homes was $457,000, compared to $448,000 in the fourth quarter and $398,000 a year ago.

Lennar repurchased 5.3 million shares for $526.3 million during the quarter and said its board increased the repurchase authorization by $2 billion.

Write to Maria Armental at maria.armental@wsj.com