Lennar profit beats but new orders fall

However, Lennar said new orders during the period fell 15 percent to 2,624 homes, and that expiration of a homebuyer tax credit hurt sales.

For the June-August quarter, Lennar posted earnings of $30 million, or 16 cents a share, compared with a loss of $171.6 million, or 97 cents per share, a year ago.

Revenue rose 14 percent to $825.0 million, as deliveries jumped 10 percent to 2,950 homes.

Analysts were expecting a profit of 6 cents a share on revenue of $777.5 million, according to Thomson Reuters I/B/E/S.

Lennar and other homebuilders had benefited from a federal tax credit for first-time home buyers, but the credit expired in April.

Last week, Beazer Homes USA Inc cut its full-year outlook for new home orders after the expiration of the tax credit, saying potential buyers remain cautious amid high unemployment and continued foreclosures.

The expiration of the government tax credit has pulled the rug out from under homebuilders who, earlier this year, had seen a rebound in sales that many hoped reflected improving fundamental demand.

Lennar shares, which have lost 36 percent of their value since hitting a year-high in April, closed at $13.99 Friday on the New York Stock Exchange.

(Reporting by A.Ananthalakshmi in Bangalore; Editing by Roshni Menon)

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