Lennar first-quarter profit beats analysts’ estimates

Lennar Corp., the third-largest U.S. homebuilder by revenue, reported first-quarter earnings that beat analysts’ estimates as revenue rose more than expected.

Net income for the three months ending Feb. 29 fell to $15 million, or 8 cents a share, from $27.4 million, or 14 cents, a year earlier, the Miami-based company said today in a statement. Lennar was expected to earn about 5 cents a share, the average estimate of 20 analysts in a Bloomberg survey.

“We have seen the market stabilize, driven by a combination of low home prices and low interest rates, making the decision to purchase a new home more attractive compared to the heated rental market,” Chief Executive Officer Stuart Miller said in the statement.

Purchases of new homes have begun to rebound from a record low in 2011 as the unemployment rate falls and consumer confidence increases. New houses sold at an annual pace of 313,000 last month, the Commerce Department reported March 23, up 11 percent from February 2011 while down 1.6 percent from January and lower than economists’ estimates.

Lennar’s total revenue for the quarter climbed to $724.9 million from $558 million a year earlier. Analysts expected a figure of about $700 million.

Lennar, which has reported a profit in every period since the second quarter of 2010, trades distressed real estate and notes through its Rialto Investments unit to supplement its homebuilding revenue. The company’s year-earlier earnings were boosted by a $37.5 million legal settlement.

The results were released before U.S. markets opened. Lennar rose 54 cents to $26.40 yesterday. Its shares have climbed 34 percent this year.