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Sep 30, 2022
Landsea Homes Q3 2022 Earnings Report
Landsea Homes experienced significant growth in home sales revenue and earnings, driven by strong performance in the Florida division and overall price appreciation.
Key Takeaways
Landsea Homes reported a strong third quarter, with a 56% increase in home sales revenue to $326 million and a 130% increase in earnings per share to $0.49. The company's home sales gross margin expanded by 480 basis points to 20.9%. While new home sales activity slowed due to higher interest rates and buyer psychology, Landsea Homes remains optimistic about the long-term outlook due to scarce existing home inventory and favorable market positioning.
Home sales revenue increased 56.3% to $326 million.
Net income was $20.0 million, or $0.49 per diluted share.
Total homes delivered increased 43% to 543 homes.
Home sales gross margin expanded 480 basis points to 20.9%.
Landsea Homes
Landsea Homes
Landsea Homes Revenue by Segment
Landsea Homes Revenue by Geographic Location
Revenue by Segment
Home Sales Revenue
CapyFin.comRevenue by Geographic Location
Arizona Revenue
CapyFin.comCalifornia Revenue
CapyFin.comFlorida Revenue
CapyFin.comTexas Revenue
CapyFin.com Forward Guidance
Landsea Homes anticipates new home deliveries to be in the range of 750 to 800 for the fourth quarter of 2022, with delivery ASPs expected to be in the range of $560,000 to $580,000. Home sales gross margin is expected to be approximately 20% on a GAAP basis, or 26% to 27% on an adjusted basis.
Positive Outlook
- New home deliveries anticipated to be in a range of 750 to 800.
- Delivery ASPs expected to be in a range of $560,000 to $580,000.
- Home sales gross margin to be approximately 20% on a GAAP basis.
- Home sales gross margin to be 26% to 27% on an adjusted basis.
- Company maintains a solid balance sheet.
Challenges Ahead
- New home sales activity slowed in the third quarter.
- Higher interest rates negatively impacted demand.
- Negative buyer psychology weighed on demand.
- Cancellation activity increased in backlog.
- Uncertainty remains until there is more clarity on the interest rate outlook.