|13:42 EDT||LEN, BZH, DHI, HOV, KBH, MDC, RYL||Lennar drops despite reporting 'excellent' land positions through FY15|
Shares of homebuilding company Lennar (LEN) are dropping slightly after the company reported better-than-expected first quarter earnings per share and revenue, along with guidance of "excellent" land positions through FY15. WHAT'S NEW: Lennar reported Q1 EPS of 35c, which was well above analysts' consensus of 28c, but included a $45.9M tax provision. The company reported Q1 revenues of $1.36B, above analysts' consensus of $1.28B, and noted that Q1 home deliveries were up 13%. Lennar reported Q1 new orders were up 10% and its Q1-end backlog was up 15%. The company's CEO, Stuart Miller, said that Lennar is "well positioned to capitalize on the recovering market" and believes the housing market is still in the early stages of overall recovery. WHAT'S NOTABLE: During the company's Q1 earnings conference call, Lennar said it is maintaining its goal to deliver between 21K-22K homes for FY14. It said that there has been "clear signs" in Q1 that volume is returning to the market even as severe weather made conditions difficult. The company noted that inventories are likely to remain constrained, but it believes that all of its business segments are well positioned for the future. The company expects that cost will continue to increase in some of the material, most notably drywall, lumber and siding which will begin to impact Q2 deliveries. Lennar anticipates that construction of development pipeline will be completed over the next four years. PRICE ACTION: During afternoon trading, shares of Lennar fell by $1.09, or 2.64%, to $40.25. OTHERS TO WATCH: Other publicly traded homebuilders include Beazer Homes (BZH), D.R. Horton (DHI), Hovnanian (HOV), KB Home (KBH), M.D.C. Holdings (MDC), and Ryland Group (RYL).