NYSE$LEN

Lennar Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Lennar reported second quarter earnings, demonstrating strength and excellent performance.

Lennar Corporation reported a strong second quarter with net earnings of $1.3 billion, or $4.49 per diluted share, compared to $831.4 million, or $2.65 per diluted share for the second quarter last year. Total revenues increased 30% to $8.4 billion. The company's homebuilding gross margin was 29.5% and S,G&A was 6.1%, leading to a 23.4% net margin.

  • Net earnings per diluted share increased 69% to $4.49.
  • Total revenues increased 30% to $8.4 billion.
  • Homebuilding gross margin improved 340 basis points to 29.5%.
  • Homebuilding S,G&A expenses as a % of revenues from home sales improved 150 bps to 6.1%.

Headline financials

Total Revenue

$8.36B

Previous: $6.43B+30.0%
EPS (adj)

$4.69

Previous: $2.95+59.0%
New Orders

17.8K

Previous: 17.2K+3.7%
Debt to Total Capital

17.7%

Previous: 23.1%-23.4%
Gross Margin

29.5%

Previous: 26.1%+13.0%
Capital Expenditures

$5.09M

Previous: -$24.4M+120.9%
Free Cash Flow

$120M

Previous: $807M-85.2%
Net Income

$1.32B

Previous: $831M+58.9%
Operating Income

$1.75B

Previous: $1.2B+46.0%
Gross Profit

$1.97B

Previous: $6.42B-69.2%
Cash & Equivalents

$1.31B

Previous: $2.74B-52.0%
Total Assets

$34.3B

Previous: $31.2B+9.9%
Stock-Based Comp

$35.1M

Previous: $31.8M+10.2%

Revenue & EPS history

Lennar · Revenue · Quarterly

$8.36B

Q2 2022+30%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Lennar · $8.36B total across 4 segments · Q2 2022

  • Homebuilding
    $7.98B+33.0%
  • Financial Services
    $200M-8.5%
  • Multifamily
    $176M-0.8%
  • Lennar Other
    $4.53M-24.3%

Forward guidance

For the third quarter, Lennar expects deliveries between 17,000 to 18,500 homes and gross margins between 28.5% – 29.5%. For the full year, the company will leave delivery expectations at approximately 68,000 homes.

Tailwinds

  • Deliveries between 17,000 to 18,500 homes
  • Gross margins between 28.5% – 29.5%
  • Average Sales Price Slightly higher than Q2 2022
  • S,G&A as a % of Home Sales 6.0% - 6.5%
  • Financial Services Operating Earnings $70 million - $75 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 2022

Historical avgQ2 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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