2023-06-14 17:16:37 ET
Lennar ( LEN ) stock gained 2.8% in Wednesday after-hours trading after the homebuilder boosted its full-year guidance for home deliveries and its Q3 guidance topped consensus estimates as homebuyers adjusted to higher interest rates.
"As consumers have come to accept a 'new normal' range for interest rates, demand has accelerated, leaving the market to reconcile the chronic supply shortage derived from over a decade of production deficits," said Lennar Executive Chairman Stuart Miller.
The company expects to deliver 68K-70K homes in fiscal year 2023, up from its previous guidance of 62K-66K.
For the quarter ending Aug. 31, 2023, Lennar ( LEN ) expects to deliver 17,750 to 18,250 homes and gross margin of 23.5%-24.0%, exceeding the Visible Alpha consensus of 16,927 homes delivered and gross margin of 21.3%.
For Q2, which ended May 31, 2023, the company delivered 17,074 homes (vs. Visible Alpha estimate of 15,637) and gross margin of 22.5% vs. estimate of 21.3%.
That compared with Q2 2022 deliveries of 16,549 and gross margin of 29.5%.
The company expects Q3 average sales price consistent with Q2's $449K. That compared with an average sales price of $449K in Q2 2022.
Earlier, Lennar non-GAAP EPS of $2.94 beat by $0.62, while revenue of $8.05B beat by $810M .
More on Lennar:
- Lennar Stock Hits All-Time High Before Q2 Earnings: A Closer Look
- Lennar: A Gentle Trough in This Cycle
- Lennar: The Market Likely Isn't Considering the Cyclical Evidence
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Lennar boosts year guidance, issues strong Q3 outlook after Q2 beat