NYSE$LEN

Lennar Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Lennar reported strong Q3 2020 earnings, driven by robust market conditions and solid execution.

Lennar Corporation reported Q3 2020 net earnings of $666.4 million, or $2.12 per diluted share, compared to $513.4 million, or $1.59 per diluted share in the prior year. Revenues were $5.9 billion, consistent with the prior year. The company's homebuilding and financial services businesses performed well, contributing to the strong results. Looking forward, Lennar expects continued strong demand and sales in Q4 2020.

  • Net earnings increased to $666.4 million, or $2.12 per diluted share, up 30% and 33%, respectively, compared to the prior year.
  • New orders increased by 16% to 15,564 homes, with a dollar value of $6.3 billion, up 20%.
  • Gross margin on home sales improved to 23.1%, a 270 basis point increase over the prior year.
  • Financial Services operating earnings reached $135.1 million, an all-time, third quarter high.

Headline financials

Total Revenue

$5.87B

Previous: $5.86B+0.2%
EPS (adj)

$2.12

Previous: $1.59+33.3%
Home Deliveries

13.8K

Previous: 13.5K+2.4%
New Orders

15.6K

Previous: 13.4K+16.4%
Debt to Total Capital

29.5%

Previous: 37.1%-20.5%
Gross Margin

23.1%

Previous: 20.4%+13.2%
Capital Expenditures

-$42.9M

Previous: -$69.6M+38.4%
Free Cash Flow

$624M

Previous: $444M+40.5%
Net Income

$666M

Previous: $513M+29.8%
Operating Income

$952M

Previous: $667M+42.7%
Gross Profit

$5.83B

Previous: $5.86B-0.4%
Cash & Equivalents

$2.21B

Previous: $1.07B+106.5%
Total Assets

$29.3B

Previous: $29.5B-0.5%
Stock-Based Comp

$28.7M

Previous: $34M-15.8%

Revenue & EPS history

Lennar · Revenue · Quarterly

$5.87B

Q3 2020+0.2%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Lennar · $5.87B total across 4 segments · Q3 2020

  • Homebuilding
    $5.51B
  • Financial Services
    $237M
  • Multifamily
    $115M
  • Lennar Other
    $12.9M

Forward guidance

The Company's expected results of its homebuilding and financial services activities during the fourth quarter of fiscal year 2020:

Tailwinds

  • New Orders: 13,800 - 14,300
  • Deliveries: 15,500 - 16,000
  • Average Sales Price: $390,000
  • Gross Margin % on Home Sales: 23.25% - 23.5%
  • Financial Services Operating Earnings: $100 - $105 million

Headwinds

  • S,G&A as a % of Home Sales: 7.7% - 7.8%

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 Q3 2020

Historical avgQ3 2020

+1.0%

Avg return

Earnings day

+0.6%

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%-7.4%
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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