Lennar Stock Gains After Q1 Results Beats Expectation

  • Lennar Corporation LEN reported first-quarter FY22 revenue growth of 16.5% year-over-year to $6.20 billion, beating the consensus of $6.08 billion.
  • Deliveries increased 2% Y/Y to 12,538 homes; New orders increased 1% Y/Y to 15,747 homes; new orders dollar value increased 19% Y/Y to $7.8 billion.
  • Adjusted EPS was $2.70, above the consensus of $2.60
  • Lennar’s backlog increased by 24% Y/Y to 27,335 homes; backlog dollar value increased 43% Y/Y to $13.6 billion.
  • Gross margin on home sales improved 190 bps to 26.9%.
  • The net margin on home sales improved by 280 bps to 19.4%.
  • Homebuilding operating earnings increased to $1.1 billion, from $0.8 billion a year ago.
  • Financial Services operating earnings were $90.8 million, compared to $146.2 million 1Q21; Multifamily operating earnings were $5.4 million, compared to a loss of $0.9 million; and Lennar’s Other operating loss stood at $403.1 million, compared to operating earnings of $471.3 million in 1Q21.
  • During the quarter, LEN repurchased 5.3 million shares for $526.3 million.
  • Buyback: Lennar Board approved a new $2 billion stock repurchase authorization.
  • Lennar had $1.4 billion of Homebuilding cash and cash equivalents and no borrowings under its $2.5 billion revolving credit facility, as of February 28, 2022.
  • 2Q22 Outlook: LEN expects New Orders in the range of 17,800 - 18,200, Deliveries between 16,000 - 16,300, and an Average Sales Price of ~ $470,000.
  • It expects Gross Margin on Home Sales of 28% - 28.25%, SG&A as a % of Home Sales of 6.8% - 7%, and Financial Services Operating Earnings of $90 million - $100 million.
  • FY22 Outlook: The company expects Deliveries of about 68,000, Average Sales Price to be between $470,000 - $475,000.
  • LEN expects FY22 Gross Margin on Home Sales of 27.25% - 28%, S,G&A as a % of Home Sales of 6.6% - 6.8%, and Financial Services Operating Earnings of $440 million - $450 million.
  • Price Action: LEN shares are trading higher by 1.68% at $90 during the post-market session on Wednesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceBuybacksBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!