By Yasin Ebrahim

Investing.com Homebuilder Lennar Reports on fiscal quarter one results exceeded estimates, as higher home prices increased margins and offset costs during a time of strong demand for first homes.   

Lennar’s (NYSE:) stock was almost 2% higher in after-hours traders

Lennar posted fiscal first quarter earnings of $2.70 per share on revenues of $6.2 million, an increase of $2.04 per share from a year ago. For revenues of $6.16billion, analysts were anticipating earnings per share at $2.58.

Higher margins compensate for an increase in costs, which results in better than expected results. 

According to the company, “Both gross and net margins remained strong, even when materials costs and wages rose, and home prices continue to rise while remaining accessible even as interest rates tick up.” 

Deliveries increased 2% to 12,538 homes, while new orders were up 1% to 15,747 homes.

The company expects to deliver 16,000-16,300 units and have an average sale price of $470,000 for the second quarter.

The company expects 68,000 delivery in 2022. Average sales price will be between $470,000 and $475,000.

A new $2 billion share buyback program was authorized by the company.