Sept. 20 (Reuters) – Lennar Corp (LEN.N) said on Monday it expects supply chain challenges in the homebuilding industry to continue and expect deliveries in the fourth quarter below analysts’ estimates, causing the shares of the second largest US maker to fall 3.4% in aftermarket trading.
The US real estate market has faced labor supply issues in recent months, causing shortages of lumber and other raw materials as well as rising construction costs, while demand new housing increased.
“During the third quarter, our business and the residential construction industry as a whole continued to face unprecedented supply chain challenges that we believe will continue for the foreseeable future,” said Lennar executive chairman Stuart Miller.
“The housing market has proven to be strong in the current environment as demand continues to exceed limited supply.”
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Lennar reported onshore supply chain issues due to delays in approving permits and said he planned to deliver around 18,000 homes in the fourth quarter, against estimates of 20,343 homes, according to data from Refinitiv.
Biggest rival DR Horton Inc
Orders, an indicator of future revenue, rose 4.6% to 16,277 units in the third quarter, while shipments increased to 15,199 units from 13,842 units. The average price of homes delivered rose 8% to $ 428,000.
Excluding mark-to-market gains, Lennar earned $ 3.27 per share.
Net income attributable to the company increased 111% to $ 1.41 billion, or $ 4.52 per share, in the quarter ended August 31.
Revenue rose 18.2% to $ 6.94 billion, above analysts’ average estimate of $ 6.87 billion.
Report by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi
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