MIAMI (

TheStreet

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Lennar

(LEN) - Get Report

, the homebuilder, reported a much narrower fiscal first-quarter loss as it sees signs that the housing market is "moving towards stabilization."

Lennar's first-quarter loss was $6.5 million, or 4 cents a share, compared with a year-earlier loss of $155.9 million, or 98 cents a share.

Analysts polled by Thomson Reuters expected a loss of 30 cents a share.

"We continue to see that the overall housing market is moving towards stabilization, as more confident homebuyers recognize the increased affordability of homeownership," said Stuart Miller, CEO and president, in a statement Wednesday. "In the first quarter, this was evidenced by our improved traffic levels, higher backlog, lower cancellation rates and reduced sales incentives."

Miller added the company is on track with its goal of being profitable in fiscal 2010.

Lennar reported first-quarter revenue of $574.4 million, down 3% from $593.1 million a year earlier. Wall Street's forecast was $568.2 million.

The homebuilder said its gross margin on home sales in the first quarter was 19.2%.

Deliveries in the quarter fell 6% to 2,004 homes, new orders rose 18% and its cancelation rate was 13%, Lennar said.

-- Reported by Joseph Woelfel in New York.

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