Corrected: Homebuilder Lennar swings to Q1 profit

Reuters

(Reuters) - Lennar Corp <LEN.N>, the third-largest U.S. homebuilder, swung to a quarterly profit, mainly helped by higher margins.

The Miami-based builder, which has operations in 14 states, said gross margins on home sales rose 80 basis points to 20 percent.

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"Gross margin percentage on home sales improved compared to last year, primarily due to reduced sales incentives offered to homebuyers as a percentage of revenues from home sales," the company said.

December-February net income attributable to Lennar was $27.4 million, or 14 cents a share, compared with a net loss of $6.5 million, or 4 cents a share, a year ago.

Revenue fell 3 percent to $558 million.

Analysts on average were expecting a loss of 5 cents a share on revenue of $507.9 million, according to Thomson Reuters I/B/E/S.

Shares of the company were up 2 percent in premarket trade. They closed at $19.75 on Monday on the New York Stock Exchange.

(Reporting by Megha Mandavia; Editing by Unnikrishnan Nair)