NYSE$LEN

Lennar Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported second quarter earnings with increased net earnings and revenue, driven by strong performance in homebuilding and financial services.

Lennar reported a strong second quarter with net earnings of $831.4 million, or $2.65 per diluted share, a 61% increase compared to the previous year. Revenues increased by 22% to $6.4 billion, driven by strong performance in the homebuilding and financial services segments. The company expects continued strong performance in the third quarter, with deliveries between 15,800 and 16,100 homes and homebuilding gross margins between 27.0% and 27.5%.

  • Net earnings increased by 61% to $831.4 million, or $2.65 per diluted share.
  • Revenues increased by 22% to $6.4 billion.
  • New orders increased by 32% to 17,157 homes.
  • Homebuilding gross margin reached a record 26.1%.

Headline financials

Total Revenue

$6.43B

Previous: $5.29B+21.6%
EPS (adj)

$2.95

Previous: $1.65+78.8%
Home Deliveries

14.5K

Previous: 12.7K+14.4%
New Orders

17.2K

Previous: 13.0K+31.8%
Debt to Total Capital

23.1%

Previous: 31.2%-26.0%
Gross Margin

26.1%

Previous: 21.6%+20.8%
Capital Expenditures

-$24.4M

Previous: -$25.7M+5.3%
Free Cash Flow

$807M

Previous: $492M+64.1%
Net Income

$831M

Previous: $517M+60.7%
Operating Income

$1.2B

Previous: $760M+58.2%
Gross Profit

$6.42B

Previous: $5.26B+22.1%
Cash & Equivalents

$2.74B

Previous: $1.4B+95.5%
Total Assets

$31.2B

Previous: $29.3B+6.5%
Stock-Based Comp

$31.8M

Previous: $23.3M+36.6%

Revenue & EPS history

Lennar · Revenue · Quarterly

$6.43B

Q2 2021+21.6%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Lennar · $6.4B total across 4 segments · Q2 2021

  • Homebuilding
    $6B+22.4%
  • Financial Services
    $219M+11.5%
  • Multifamily
    $177M+44.1%
  • Lennar Other
    $5.98M-67.7%

Forward guidance

The Company's expected results of its homebuilding and financial services activities for the third quarter of 2021: New Orders 16,000 - 16,300 Deliveries 15,800 - 16,100 Average Sales Price $420,000 - $425,000 Gross Margin % on Home Sales 27.0% - 27.5% S,G&A as a % of Home Sales 7.3% - 7.4% Financial Services Operating Earnings $95 million - $100 million

Tailwinds

  • Deliveries between 15,800 - 16,100
  • Average Sales Price $420,000 - $425,000
  • Gross Margin % on Home Sales 27.0% - 27.5%
  • S,G&A as a % of Home Sales 7.3% - 7.4%
  • Financial Services Operating Earnings $95 million - $100 million

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 Q2 2021

Historical avgQ2 2021

+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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