LEN - Lennar Corp Q1 earnings: 'housing market fundamentals remained strong'

2024-03-13 16:39:21 ET

Lennar Corp (NYSE: LEN) is trading up in extended hours on Wednesday after reporting lower-than-expected revenue for its first financial quarter.

Lennar’s guidance for its fiscal second quarter

Investors are concerned because the guidance did not particularly impress either. now expects to deliver up to 19,500 homes in the second quarter.

Analysts, in comparison, were at. Stuart Miller – the co-chief executive of Lennar Corp said in a press release today:

We remain focused on our “land strategies” initiatives to intensify our land light focus and assure consistency of execution now and in future as we embrace an ever-more focused manufacturing model for Lennar.

Lennar expects average sales price to be around $422,500 in Q2 helping gross margin on home sales to come in at 22.5%. is still up close to 60% versus its low in late October.

Notable figures in Lennar’s Q1 earnings release

• Earned $719 million versus the year-ago $599 million
• Per-share earnings also improved from $2.06 to $2.57
• Repurchased 3.4 million shares in total in Q1
• Total revenue jumped 13% year-over-year to $7.3 billion
• Consensus was $2.22 a share on $7.41 billion in revenue
• Delivered 16,798 homes – up 23% versus last year

Lennar received 18,176 new orders for homes – up 28% and ended its first quarter with a backlog of 16,270 homes, as per the earnings report. Co-CEO Miller also said on Wednesday:

Housing market fundamentals remained strong as demand continued to outweigh supply. These conditions remained constructive for our overall operating strategy of focusing on production and sales pace over price while growing market share.

In January, raised its dividend and authorised another $5.0 billion worth of share repurchase. Wall Street currently has a consensus “overweight” rating on the home construction company.

This is a developing story. Check back in a few minutes for more updates!

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