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Aug 31, 2021
Lennar Q3 2021 Earnings Report
Lennar reported Q3 2021 earnings with EPS of $4.52.
Key Takeaways
Lennar reported strong Q3 2021 results, with net earnings of $1.4 billion or $4.52 per diluted share. Revenues increased by 18% to $6.9 billion, driven by a 10% increase in home deliveries and an 8% increase in average sales price. The company experienced supply chain challenges, impacting delivery guidance, but new home demand remained strong.
Net earnings were $1.4 billion, or $4.52 per diluted share, up over 100% compared to the prior year.
Revenues increased by 18% to $6.9 billion.
Homebuilding gross margin reached a record high of 27.3%.
The company ended the quarter with $2.6 billion in cash and no borrowings on its $2.5 billion revolver.
Revenue by Segment
Forward Guidance
The company expects to deliver about 18,000 homes in the fourth quarter, with homebuilding gross margins around 28.0%.
Positive Outlook
- Demand continues to outstrip limited supply.
- Limited supply and production will prevent excess production.
- Strong housing market conditions are expected to continue.
- Excellent balance sheet.
- Continued execution of core operating strategies.
Challenges Ahead
- Industry supply chain issues are expected to continue.
- Deliveries of 15,199 homes were about 600 homes below the low end of guidance.
- Adjusting fourth quarter delivery guidance to, more or less, 18,000 homes.
- Land supply chain challenges as approvals for permits and entitlements have also been delayed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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