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Feb 28, 2023
Lennar Q1 2023 Earnings Report
Lennar's Q1 2023 earnings reflected strong execution of operating strategies amidst a fluctuating interest rate environment.
Key Takeaways
Lennar reported a net earnings increase of 18% to $597 million, or $2.06 per diluted share. Excluding mark-to-market losses on technology investments, net earnings decreased 23% to $615 million, or $2.12 per diluted share. Home deliveries increased by 9% to 13,659 homes, while new orders decreased by 10%. The company's homebuilding debt to total capital improved to 14.2%.
Net earnings per diluted share increased 22% to $2.06.
Home deliveries increased 9% to 13,659 homes.
Total revenues increased 5% to $6.5 billion.
Homebuilding debt to total capital improved to 14.2%.
Revenue by Segment
Forward Guidance
For the second quarter of 2023, Lennar expects deliveries to be between 15,000 to 16,000 homes and gross margin to be between 21.0% to 21.5%. For the full year 2023, the range for deliveries will be between 62,000 to 66,000 homes.
Positive Outlook
- Deliveries between 15,000 and 16,000 homes for Q2 2023.
- Gross margin between 21.0% and 21.5% for Q2 2023.
- Deliveries between 62,000 and 66,000 homes for full year 2023.
- Maintaining a strong balance sheet with significant liquidity.
- Clear strategy of execution to outperform in periods of uncertainty.
Challenges Ahead
- Fluctuating interest rates are likely to continue to move.
- Housing market will continue to rebalance pricing and interest rates.
- Unspecified risks described in filings with the SEC.
- Potential impact of inflation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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