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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.
Lennar
Lennar
Lennar Revenue by Segment
Revenue by Segment
Homebuilding Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comMultifamily Revenue
CapyFin.comLennar Other Revenue
CapyFin.com 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.
- Year end community count growth will be closer to 7% than originally targeted 10% growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income