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May 31, 2020

Lennar Q2 2020 Earnings Report

Lennar reported second quarter earnings with EPS of $1.65.

Key Takeaways

Lennar Corporation reported a decrease in revenues of 5% to $5.3 billion. EPS increased to $1.65, up from $1.30 in the prior year. The company's homebuilding gross margin increased to 21.6% from 20.1% last year.

Net earnings of $517.4 million, or $1.65 per diluted share, up from net earnings of $421.5 million, or $1.30 per diluted share, a 27% increase in earnings per share

Deliveries of 12,672 homes – consistent with prior year

New orders of 13,015 homes – down 10%; new orders dollar value of $4.9 billion – down 16%

Revenues of $5.3 billion – down 5%

Total Revenue
$5.29B
Previous year: $5.56B
-5.0%
EPS
$1.65
Previous year: $1.3
+26.9%
Home Deliveries
12.67K
New Orders
13.02K
Homebuilding Debt to Capital
31.2%
Previous year: 38.3%
-18.5%
Gross Profit
$1.1B
Previous year: $1.11B
-1.0%
Cash and Equivalents
$1.4B
Previous year: $1.02B
+37.1%
Free Cash Flow
$920M
Previous year: $74.2M
+1140.5%
Total Assets
$29.3B
Previous year: $29.6B
-0.9%

Lennar

Lennar

Lennar Revenue by Segment

Forward Guidance

Lennar is re-instituting guidance for fiscal year 2020 and now expects deliveries to be in the range of 50,500 – 51,000 homes with a gross margin on home sales of approximately 21.5% and a net margin on home sales of approximately 13.0%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income