Lennar Corp. (LEN) Reports In-Line Q4 EPS, Revenues Miss; 'Deferring Guidance for FY19 Until Markets Further Define Themselves'
Lennar Corp. (NYSE: LEN) reported Q4 EPS of $1.96, in-line with the analyst estimate of $1.96. Revenue for the quarter came in at $6.46 billion versus the consensus estimate of $6.55 billion.
- Net earnings of $796.1 million, or $2.42 per diluted share, compared to $309.6 million, or $1.29 per diluted share, which includes the following:
- $0.58 per diluted share related to the gain on sale of Rialto investment and asset management platform, partially offset by non-recurring expenses
- ($0.09) per diluted share related to backlog/construction in progress write-up related to purchase accounting
- ($0.03) per diluted share related to CalAtlantic acquisition and integration costs
- Excluding these items, EPS would have been $1.96 per diluted share
- Deliveries of 14,154 homes – up 64%
- New orders of 10,611 homes – up 44%; new orders dollar value of $4.2 billion – up 49%
- Backlog of 15,616 homes – up 75%; backlog dollar value of $6.6 billion – up 85%
- Revenues of $6.5 billion – up 71%
- Lennar Homebuilding operating earnings of $803.4 million, compared to $478.8 million
- Gross margin on home sales of 21.4%, compared to 22.4%
- S,G&A expenses as a % of revenues from home sales improved to 7.9%, compared to 8.4%
- Operating margin on home sales of 13.5%, compared to 14.0%
- Lennar Financial Services operating earnings of $58.7 million, compared to $42.1 million
- Lennar Multifamily operating earnings of $33.0 million, compared to $38.6 million
- Lennar Homebuilding cash and cash equivalents of $1.3 billion
- Repurchased six million shares for approximately $250 million under our stock repurchase program
- Lennar Homebuilding debt to total capital of 36.9%
Mr. Miller concluded, "With a solid balance sheet, strong cash flow generation and continued execution of our core operating strategies, we believe that we are well positioned to continue our solid performance into 2019. However, due to continued softness and uncertainty at this seasonally slower time of year, we are deferring guidance for fiscal year 2019 until the markets further define themselves."
For earnings history and earnings-related data on Lennar Corp. (LEN) click here.