NYSE$LEN

Lennar Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Lennar's Q1 2022 operating performance reflected continued strength in the housing market.

Lennar Corporation reported first quarter net earnings of $503.6 million, or $1.69 per diluted share. Excluding mark-to-market losses on technology investments, net earnings were $800.2 million, or $2.70 per diluted share. Revenues increased 16% to $6.2 billion, driven by a 2% increase in home deliveries and a 15% increase in the average sales price.

  • Net earnings per diluted share were $1.69 ($2.70, excluding mark-to-market losses on technology investments).
  • Revenues increased 16% to $6.2 billion.
  • Homebuilding gross margin improved to 26.9%.
  • Homebuilding debt to total capital improved to 18.3%.

Headline financials

Total Revenue

$6.2B

Previous: $5.33B+16.5%
EPS (adj)

$2.70

Previous: $2.04+32.4%
New Orders

15.7K

Previous: 15.6K+1.1%
Debt to Total Capital

18.3%

Previous: 24.0%-23.7%
Capital Expenditures

-$5.78M

Previous: -$9.25M+37.5%
Free Cash Flow

$498M

Previous: $992M-49.8%
Net Income

$504M

Previous: $1B-49.7%
Operating Income

$803M

Previous: $1.45B-44.6%
Gross Profit

$6.2B

Previous: $5.33B+16.5%
Cash & Equivalents

$1.4B

Previous: $2.57B-45.5%
Total Assets

$32.6B

Previous: $30.6B+6.8%
Stock-Based Comp

$81.5M

Previous: $48.8M+66.9%

Revenue & EPS history

Lennar · Revenue · Quarterly

$6.2B

Q1 2022+16.5%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Lennar · $6.2B total across 4 segments · Q1 2022

  • Homebuilding
    $5.75B+17.4%
  • Multifamily
    $267M+103.4%
  • Financial Services
    $177M-27.6%
  • Lennar Other
    $7.25M+5.1%

Forward guidance

The housing industry continues to exhibit strong demand, outweighing supply, and Lennar is confident that they will continue to generate solid growth and enhance their current market position. For the second quarter, Lennar expects to deliver between 16,000 to 16,300 homes with homebuilding gross margins between 28.0% – 28.25%. For the full year, they are increasing their guidance on both deliveries and gross margin, expecting to deliver about 68,000 homes with homebuilding gross margins between 27.25% – 28.0%.

Tailwinds

  • Expects to deliver between 16,000 to 16,300 homes in Q2 2022.
  • Expects homebuilding gross margins to be between 28.0% – 28.25% in Q2 2022.
  • Increasing full year delivery guidance to approximately 68,000 homes.
  • Increasing full year homebuilding gross margin guidance to between 27.25% – 28.0%.
  • Strong demand in the housing industry.

Headwinds

  • Industry supply chain issues.
  • Increased materials costs.
  • Increased wages.
  • Home prices have continued to rise.
  • Interest rates have ticked up.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.0%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.3%

Avg return

30 days after

57%

39 / 69 earnings

Positive

+12.1%

Q1 2021

Best reaction

-8.6%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-3.4%
Q4 2025-1.1%-9.0%+0.9%
Q3 2025-4.3%-5.4%-5.3%
Q2 2025+1.6%+1.6%+22.5%
Q1 2025-4.0%-1.8%-12.8%
Q1 2026-2.2%-0.4%-11.5%
Q4 2024-8.6%-8.9%-6.6%
Q3 2024-3.3%-2.2%+0.3%
Q2 2024-4.1%-2.3%+7.3%
Q1 2024-7.9%-5.6%-3.7%
Q4 2023+2.8%+2.4%+4.5%
Q3 2023-1.0%+1.1%-5.8%
Q2 2023+3.3%+3.5%+14.9%
Q1 2023+1.2%+4.6%+4.9%
Q4 2022+4.1%-0.5%+9.1%
Q3 2022+0.7%-4.1%-4.5%
Q2 2022+4.7%+11.3%+27.0%
Q1 2022+3.5%+2.3%-11.0%
Q4 2021-2.4%-4.8%-2.7%
Q3 2021-3.5%-1.3%+0.9%
Q2 2021+2.3%+5.5%+3.7%
Q1 2021+12.1%+5.6%+14.3%
Q4 2020+8.2%+7.6%+3.7%
Q3 2020-2.0%+2.2%+7.5%
Q2 2020+7.9%+1.6%+15.3%
Q1 2020+10.2%+15.1%+38.8%
Q4 2019+1.0%+6.0%+20.7%
Q3 2019+5.0%+6.5%+9.3%
Q2 2019-7.5%-5.7%-7.1%
Q1 2019+0.1%-1.6%+4.7%
Q4 2018+5.3%+5.4%+7.3%
Q3 2018-4.4%-2.8%-7.5%
Q2 2018+4.1%+6.7%+6.7%
Q1 2018+12.1%+6.5%-4.6%
Q4 2017+4.3%+3.9%-12.0%
Q3 2017+6.8%+5.8%+4.3%
Q2 2017+1.0%-1.2%+1.0%
Q1 2017-3.7%-3.1%-1.5%
Q4 2016-1.0%-2.0%+2.0%
Q3 2016-3.6%-4.4%-8.2%
Q2 2016-1.5%-4.1%+4.7%
Q1 2016+2.4%
Q4 2015-1.3%
Q3 2015-4.4%
Q2 2015+5.0%
Q1 2015+1.1%
Q4 2014-5.6%
Q3 2014+5.8%
Q2 2014+0.2%
Q1 2014-4.3%
Q4 2013+5.2%
Q3 2013+5.4%
Q2 2013+2.9%
Q1 2013+2.3%
Q4 2012-1.2%
Q3 2012-3.3%
Q2 2012+7.2%
Q1 2012+4.8%
Q2 2011-3.5%
Q4 2010-3.5%
Q4 2011-3.5%
Q3 2011+2.0%
Q1 2010-0.3%
Q1 2011-0.3%
Q4 2008+1.4%
Q2 2010+1.4%
Q4 2009+6.0%
Q3 2009+6.0%
Q3 2010+6.0%

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