Lennar Q2 Profit Rises; Total Revenues Up 30%

Lennar Corporation (LEN) reported that its second quarter net earnings increased 49% year-on-year, excluding mark-to-market losses on technology investments in both years and the gain on the sale of the residential solar business in the prior year. Deliveries increased 14% to 16,549 homes during the quarter. New orders increased 4% to 17,792 homes.

Net earnings attributable to company was $1.3 billion, or $4.49 per share, compared to $831.4 million, or $2.65 per share, prior year. Excluding items, net earnings attributable to Lennar were $1.4 billion, or $4.69 per share, compared to $923.6 million, or $2.95 per share, a year ago.

On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $3.98, for the quarter. Analysts’ estimates typically exclude special items.

Total revenues increased 30% to $8.4 billion. Revenues from home sales increased 33% to $8.0 billion. The company noted that revenues were higher primarily due to a 14% increase in the number of home deliveries and a 17% increase in the average sales price. Analysts on average had estimated $8.11 billion in revenue.

Stuart Miller, Executive Chairman of Lennar, said, “We achieved a homebuilding gross margin of 29.5% and homebuilding S,G&A of 6.1%, leading to a 23.4% net margin, even as materials costs and wages have increased. Our home deliveries were above the high end of our guidance given at the beginning of the quarter.”

For third quarter, the company projects deliveries between 17,000 to 18,500 homes and gross margins between 28.5% – 29.5%. For the full year, the company estimates delivery at approximately 68,000 homes.

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