Lennar reported an increase in net income to $1.32 billion, or $4.49 per share, from $831.4 million, or $2.65 per share, in the same quarter a year earlier.

Earnings per share were $4.69 after deducting mark-to-market losses on technology investments, above the FactSet consensus estimate of $3.95 per share.

Before the market opened, shares of Lennar (ticker: LEN) were up 5.2% to $68. In 2022, the stock has lost more than 44% of its value.

By comparison, FactSet predicted $8.11 billion for Lennar’s total sales. Despite rising material and labor expenses, the gross margin on house sales grew to 23.4% from 18.6%.

Buyers in many areas started to halt and ponder after a quick doubling of interest rates over six months and an acceleration in price appreciation.” Stuart Miller, Lennar’s executive chairman, said the company started to observe these consequences after the quarter.

There was a 13-month-low in US house development in May, as increasing interest rates deterred some purchasers and persistent supply chain problems affected construction costs.

Using seasonally adjusted annual rates, home starts in the United States fell by 14.4% in May to 1.5 million units, according to the latest statistics from the Department of Housing and Urban Development and the Census Bureau. The annualized rate of building permits declined 7% from the previous month to 1.69 million units.

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