Lennar Q2 Profit Rises (LEN)

Homebuilder Lennar Corporation (NYSE:LEN) reported an increase in its second-quarter profit, driven by strong sales and a tax-related gain. However, the company expects a slow and steady recovery in the housing market.

U.S. housing market has shown some signs of improvement in the last few months. On Tuesday, latest housing market data showed that home prices in 20 U.S. cities fell 1.9% in April, below forecast of a 2.4% decline. Prices rose on 1.3% on month-over-month basis. Although recent data from the housing market has been encouraging, the recovery is likely to be slow.

Lennar’s CEO Stuart Miller noted that evidence from the field indicates that the “for sale” housing market has bottomed.

Lennar reported a profit of $452.7 million, or $2.06 per share for the quarter ended May 31, 2012. This compares to profit of only $13.8 million, or $0.07 per share reported in the same period last year. LEN’s second-quarter profit benefited from a $1.85 per share tax-related gain. But, even without the gain, the company’s profit for the quarter beat expectations.

Revenue rose 22% to $930.2 million in the quarter. Homebuilding revenue jumped 22% in the quarter.

LEN stock is up more than 4% in early trading today.

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