Lennar Corp. (LEN) Tops Q3 EPS by 18c, Revenues Beat
Lennar Corp. (NYSE: LEN) reported Q3 EPS of $1.37, $0.18 better than the analyst estimate of $1.19. Revenue for the quarter came in at $5.67 billion versus the consensus estimate of $5.64 billion.
- Net earnings of $453.2 million, or $1.37 per diluted share, which includes the following:
- $0.21 per diluted share related to backlog/construction in progress write-up related to purchase accounting
- $0.03 per diluted share related to acquisition and integration costs
- Excluding these items, EPS would have been $1.61 per diluted share
- In addition, tax benefits totaling $34.1 million, or $0.10 per diluted share, were recorded primarily related to tax accounting method changes and energy credits
- Deliveries of 12,613 homes – up 66%
- New orders of 12,319 homes – up 62%; new orders dollar value of $5.1 billion – up 73%
- Backlog of 19,220 homes – up 88%; backlog dollar value of $8.4 billion – up 105%
- Revenues of $5.7 billion – up 74%
- Lennar Homebuilding operating earnings of $612.0 million, compared to $386.3 million
- Gross margin on home sales of 20.3% (21.9% excluding backlog/construction in progress write-up related to purchase accounting), compared to 22.8%
- S,G&A expenses as a % of revenues from home sales of 8.6% – improved 60 basis points
- Operating margin on home sales of 11.7% (13.3% excluding backlog/construction in progress write-up related to purchase accounting), compared to 13.6%
- Lennar Financial Services operating earnings of $56.6 million, compared to $49.1 million
- Rialto operating earnings (net of noncontrolling interests) of $10.7 million, compared to $3.2 million
- Lennar Multifamily operating loss of $3.9 million, compared to operating earnings of $9.1 million
- Lennar Homebuilding cash and cash equivalents of $833 million
- Lennar Homebuilding debt to total capital, net of cash and cash equivalents, of 37.9%
Stuart Miller, Executive Chairman of Lennar, said, "We are pleased to announce our results for the third quarter, where we achieved net earnings of $453.2 million, or $1.37 per diluted share. Our core homebuilding operations continued to leverage our size and scale in the leading markets and drive operational excellence."
"While national economic data has pointed to higher prices and rising interest rates causing slower overall sales, the basic underlying fundamentals of the housing industry of low unemployment, higher wages and low inventory levels remain favorable and are likely to support longer-term strength in the housing market."
For earnings history and earnings-related data on Lennar Corp. (LEN) click here.