NYSE$LEN

Lennar Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Lennar's Q1 2023 earnings reflected strong execution of operating strategies amidst a fluctuating interest rate environment.

Lennar reported a net earnings increase of 18% to $597 million, or $2.06 per diluted share. Excluding mark-to-market losses on technology investments, net earnings decreased 23% to $615 million, or $2.12 per diluted share. Home deliveries increased by 9% to 13,659 homes, while new orders decreased by 10%. The company's homebuilding debt to total capital improved to 14.2%.

  • Net earnings per diluted share increased 22% to $2.06.
  • Home deliveries increased 9% to 13,659 homes.
  • Total revenues increased 5% to $6.5 billion.
  • Homebuilding debt to total capital improved to 14.2%.

Headline financials

Total Revenue

$6.49B

Previous: $6.2B+4.6%
EPS (adj)

$2.12

Previous: $2.70-21.5%
New Orders

14.2K

Previous: 15.7K-9.9%
Debt to Total Capital

14.2%

Previous: 18.3%-22.4%
Gross Margin

21.2%

No prior period
Capital Expenditures

$5.42M

Previous: -$5.78M+193.8%
Free Cash Flow

$973M

Previous: $498M+95.4%
Net Income

$597M

Previous: $504M+18.6%
Operating Income

$784M

Previous: $803M-2.3%
Gross Profit

$1.3B

Previous: $6.2B-79.0%
Cash & Equivalents

$4.1B

Previous: $1.4B+192.9%
Total Assets

$36.6B

Previous: $32.6B+12.1%
Stock-Based Comp

$86.6M

Previous: $81.5M+6.3%

Revenue & EPS history

Lennar · Revenue · Quarterly

$6.49B

Q1 2023+4.6%vs Q1 2022
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lennar · $6.49B total across 4 segments · Q1 2023

  • Homebuilding
    $6.16B+7.0%
  • Financial Services
    $183M+3.6%
  • Multifamily
    $144M-46.3%
  • Lennar Other
    $7.62M+5.1%

Forward guidance

For the second quarter of 2023, Lennar expects deliveries to be between 15,000 to 16,000 homes and gross margin to be between 21.0% to 21.5%. For the full year 2023, the range for deliveries will be between 62,000 to 66,000 homes.

Tailwinds

  • Deliveries between 15,000 and 16,000 homes for Q2 2023.
  • Gross margin between 21.0% and 21.5% for Q2 2023.
  • Deliveries between 62,000 and 66,000 homes for full year 2023.
  • Maintaining a strong balance sheet with significant liquidity.
  • Clear strategy of execution to outperform in periods of uncertainty.

Headwinds

  • Fluctuating interest rates are likely to continue to move.
  • Housing market will continue to rebalance pricing and interest rates.
  • Unspecified risks described in filings with the SEC.
  • Potential impact of inflation.
  • Impact of increased cost of mortgage financing for homebuyers.

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 2023

Historical avgQ1 2023

+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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