Lennar Q1 2022 Earnings Report
Key Takeaways
Lennar Corporation reported first quarter net earnings of $503.6 million, or $1.69 per diluted share. Excluding mark-to-market losses on technology investments, net earnings were $800.2 million, or $2.70 per diluted share. Revenues increased 16% to $6.2 billion, driven by a 2% increase in home deliveries and a 15% increase in the average sales price.
Net earnings per diluted share were $1.69 ($2.70, excluding mark-to-market losses on technology investments).
Revenues increased 16% to $6.2 billion.
Homebuilding gross margin improved to 26.9%.
Homebuilding debt to total capital improved to 18.3%.
Lennar
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Lennar Revenue by Segment
Lennar Revenue by Geographic Location
Forward Guidance
The housing industry continues to exhibit strong demand, outweighing supply, and Lennar is confident that they will continue to generate solid growth and enhance their current market position. For the second quarter, Lennar expects to deliver between 16,000 to 16,300 homes with homebuilding gross margins between 28.0% – 28.25%. For the full year, they are increasing their guidance on both deliveries and gross margin, expecting to deliver about 68,000 homes with homebuilding gross margins between 27.25% – 28.0%.
Positive Outlook
- Expects to deliver between 16,000 to 16,300 homes in Q2 2022.
- Expects homebuilding gross margins to be between 28.0% – 28.25% in Q2 2022.
- Increasing full year delivery guidance to approximately 68,000 homes.
- Increasing full year homebuilding gross margin guidance to between 27.25% – 28.0%.
- Strong demand in the housing industry.
Challenges Ahead
- Industry supply chain issues.
- Increased materials costs.
- Increased wages.
- Home prices have continued to rise.
- Interest rates have ticked up.
Revenue & Expenses
Visualization of income flow from segment revenue to net income