(Reuters). – U.S. housebuilder Lennar Corporation (NYSE:) Thursday projected a profit of current quarter above the Street’s estimates. This is because strong demand for more expensive homes continues to boost its performance despite the challenges facing the industry.

Lennar beat its first quarter revenue estimates on Tuesday due to soaring home prices. The company also raised its full-year homebuilding revenues outlook from $31 billion to $32 billion.

However, the company cautioned that supply chain disruptions and inflation have sent prices of raw materials, specifically lumber, surging – leading to an increase in the number of days it takes to complete building a home.

Chairman Stuart Miller explained that the “inability to construct and deliver actual homes” has been hindered by a supply chain that was almost insurmountable.

In a conference call, Lennar stated that it expected second quarter earnings to be $3.80-4.00 per share, compared with the $3.75 expected by analysts.

Lennar claimed that SpinCo had submitted a confidential form 10 in February. The company also initiated a process at the New York Stock Exchange for its shares to be listed.