Lennar (LEN) Higher After Solid Q4 Results
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Price: $87.02 +1.87%
Revenue Growth %: -5.5%
Financial Fact:
Total revenues: 1.99B
Today's EPS Names:
BTTX, VAXX, ELYS, More
Revenue Growth %: -5.5%
Financial Fact:
Total revenues: 1.99B
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Lennar Corporation (NYSE: LEN) today reported results for its fourth quarter and fiscal year ended November 30, 2011. Shares of LEN are trading up 3.76 percent in the early hours of trading today to $21.52.
Total revenues at the homebuilder rose 11 percent year over year to $952.7 million, topping the the Street's consensus of $913.95 million. Revenues from home sales increased 13 percent $816.5 million from $725.8 million in the fourth quarter of 2010. The average sales price of homes delivered increased to $243,000 in the fourth quarter of 2011 from $238,000 in the same period last year.
Corporate general and administrative expenses were $28.5 million, or 3.0 percent as a percentage of total revenues, compared to $25.1 million, or 2.9 percent as a percentage of total revenues, in 2010.
Gross margins on home sales were $158.4 million, or 19.4%, compared to gross margins on home sales of $128.7 million, or 17.7%, in the fourth quarter of 2010. Gross profits on land sales totaled $0.8 million, compared to $13.7 million in the fourth quarter of 2010.
Selling, general and administrative expenses were $112.5 million and $102.0 million, respectively, in the fourth quarter of 2011 and 2010.
Net earnings were $30.3 million, or $0.16 per diluted share, compared to fourth quarter 2010 net earnings of $32.0 million, or $0.17 per diluted share. This was slightly below the Street's consensus of $0.17 per share for the quarter.
Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "During the quarter, we continued to manage our homebuilding business carefully with tight controls over our costs and a focus on improving our gross margins. We benefited greatly from our strategic capital investments in new higher margin communities, which helped us produce a 21.6% gross margin, excluding valuation adjustments, in the fourth quarter."
Mr. Miller continued, "As we come to the end of 2011 and head into 2012, we have seen the market start to stabilize, driven by a combination of low home prices and low interest rates, making the decision to purchase a new home more attractive, compared to the heated rental market. These factors are reflected in our new orders and sales backlog, which increased 20% and 35%, respectively, from the prior year quarter."
Total revenues at the homebuilder rose 11 percent year over year to $952.7 million, topping the the Street's consensus of $913.95 million. Revenues from home sales increased 13 percent $816.5 million from $725.8 million in the fourth quarter of 2010. The average sales price of homes delivered increased to $243,000 in the fourth quarter of 2011 from $238,000 in the same period last year.
Corporate general and administrative expenses were $28.5 million, or 3.0 percent as a percentage of total revenues, compared to $25.1 million, or 2.9 percent as a percentage of total revenues, in 2010.
Gross margins on home sales were $158.4 million, or 19.4%, compared to gross margins on home sales of $128.7 million, or 17.7%, in the fourth quarter of 2010. Gross profits on land sales totaled $0.8 million, compared to $13.7 million in the fourth quarter of 2010.
Selling, general and administrative expenses were $112.5 million and $102.0 million, respectively, in the fourth quarter of 2011 and 2010.
Net earnings were $30.3 million, or $0.16 per diluted share, compared to fourth quarter 2010 net earnings of $32.0 million, or $0.17 per diluted share. This was slightly below the Street's consensus of $0.17 per share for the quarter.
Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "During the quarter, we continued to manage our homebuilding business carefully with tight controls over our costs and a focus on improving our gross margins. We benefited greatly from our strategic capital investments in new higher margin communities, which helped us produce a 21.6% gross margin, excluding valuation adjustments, in the fourth quarter."
Mr. Miller continued, "As we come to the end of 2011 and head into 2012, we have seen the market start to stabilize, driven by a combination of low home prices and low interest rates, making the decision to purchase a new home more attractive, compared to the heated rental market. These factors are reflected in our new orders and sales backlog, which increased 20% and 35%, respectively, from the prior year quarter."
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