2023-03-15 12:52:39 ET
- Lennar ( NYSE: LEN ) reported Q1 net earnings of $597M, or $2.06/share, compared to $504M, or $1.69/share in year ago quarter.
- Revenues saw a 7% increase due to a 9% increase in the number of home deliveries while gross margins narrowed to 21.2% from 26.9% led by revenues per square foot were flat Y/Y as Lennar priced homes to market while costs per square foot increased primarily due to higher materials and labor costs.
- "Consistent with our clear strategy of maintaining sales pace, our home deliveries were 13,659, up 9% Y/Y, and above the high end of our guidance estimate given at the beginning of the quarter. Concurrently, in order to drive sales, we moderated homebuilding gross margin to 21.2% and carefully managed homebuilding S,G&A expenses of 7.4%, leading to a 13.8% net margin. Our gross margin declined by 570 bps Y/Y as we adjusted the price of both our new home sales and homes in backlog to market to promote deliveries and reduce cancellation rates," Executive Chairman Stuart Miller commented.
- During the quarter, the company repurchased 2M shares of its stock for $189M at an average share price of $94.59.
- As of Feb. 28, 2023, the company had $4.1B of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.6B revolving credit facility, thereby providing ~$6.7B of available capacity,
- Outlook: For Q2 2023, the range for deliveries will be between 15K to 16K homes and gross margin will be 21.0% to 21.5%; for FY23, the range for deliveries will be between 62K to 66K homes. Gross Margin as percentage on Home Sales is seen between 21% to 25% while financial services operating earnings between $70-$75M.
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Lennar reports Q1 earnings and revenue growth amid rising home deliveries