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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%.
Lennar
Lennar
Lennar Revenue by Segment
Lennar Revenue by Geographic Location
Revenue by Segment
Homebuilding Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comMultifamily Revenue
CapyFin.comLennar Other Revenue
CapyFin.comRevenue by Geographic Location
East Revenue
CapyFin.comCentral Revenue
CapyFin.comTexas Revenue
CapyFin.comWest Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- Potential impact of inflation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income