Lennar Q3 2020 Earnings Report
Key Takeaways
Lennar Corporation reported Q3 2020 net earnings of $666.4 million, or $2.12 per diluted share, compared to $513.4 million, or $1.59 per diluted share in the prior year. Revenues were $5.9 billion, consistent with the prior year. The company's homebuilding and financial services businesses performed well, contributing to the strong results. Looking forward, Lennar expects continued strong demand and sales in Q4 2020.
Net earnings increased to $666.4 million, or $2.12 per diluted share, up 30% and 33%, respectively, compared to the prior year.
New orders increased by 16% to 15,564 homes, with a dollar value of $6.3 billion, up 20%.
Gross margin on home sales improved to 23.1%, a 270 basis point increase over the prior year.
Financial Services operating earnings reached $135.1 million, an all-time, third quarter high.
Lennar
Lennar
Lennar Revenue by Segment
Forward Guidance
The Company's expected results of its homebuilding and financial services activities during the fourth quarter of fiscal year 2020:
Positive Outlook
- New Orders: 13,800 - 14,300
- Deliveries: 15,500 - 16,000
- Average Sales Price: $390,000
- Gross Margin % on Home Sales: 23.25% - 23.5%
- Financial Services Operating Earnings: $100 - $105 million
Challenges Ahead
- S,G&A as a % of Home Sales: 7.7% - 7.8%
Revenue & Expenses
Visualization of income flow from segment revenue to net income