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Nov 30, 2023
Lennar Q4 2023 Earnings Report
Lennar reported strong Q4 2023 results driven by increased deliveries and new orders, despite a decrease in average sales price.
Key Takeaways
Lennar Corporation reported Q4 2023 net earnings of $1.4 billion, or $4.82 per diluted share. Total revenues were $11.0 billion, driven by a 19% increase in home deliveries and a 32% increase in new orders. The company's focus on production pace and sales pace resulted in strong cash flow and a strengthened balance sheet.
Net earnings per diluted share were $4.82, or $5.17 excluding adjustments.
New orders increased 32% to 17,366 homes, with a dollar value of $7.3 billion.
Deliveries increased 19% to 23,795 homes.
Homebuilding debt to total capital improved to 9.6%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lennar expects to deliver approximately 80,000 homes for the year, with 16,500 to 17,000 homes at a gross margin of between 21.0% to 21.25% in the first quarter of 2024.
Positive Outlook
- Expected delivery growth rate of 10% in 2024.
- Strong land position and community count.
- Pace over price sales strategy.
- Interest rates are expected to moderate in 2024.
- Increased share repurchase target to $2 billion in 2024.
Challenges Ahead
- First quarter gross margin on home sales expected to be between 21.0% and 21.25%.
- S,G&A as a % of Home Sales is expected to be 8.0% - 8.2% for the first quarter of 2024.
- Financial Services Operating Earnings is expected to be $85 million - $90 million for the first quarter of 2024.
- Full year margin guidance is not provided due to the rapidly evolving interest rate environment.
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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