Publish date:

Lennar Swings to Profit Despite Sales Fall

Lennar said new sales orders fell but it swung to a profit in its fiscal second quarter as operating margins improved.

MIAMI (

TheStreet

) --

Lennar

(LEN) - Get Report

, the homebuilder, said new sales orders fell but it swung to a profit in its fiscal second quarter as operating margins improved.

Lennar said second-quarter earnings were $39.7 million, or 21 cents a share, vs. a year-earlier loss of $125.2 million, or 76 cents.

TST Recommends

Revenue fell 9% to $814.5 million.

Lennar said its gross margin on home sales was 20.6%; the operating margin on home sales was 6.7%.

Lennar said new sales orders for the quarter were down 10% from a year earlier, with the entire decline coming in May as the homebuyers' tax credit expired. But Stuart Miller, Lennar's CEO and president, said in a statement that while the company was "disappointed with the slowdown in new orders in May, we believe that this will be temporary and that the market will improve in the second half of 2010."

Analysts surveyed by Thomson Reuters expected Lennar to break even in the second quarter.

-- Reported by Joseph Woelfel in New York.

Get more stock ideas and investing advice on our sister site,

Stockpickr.com.