NYSE$LEN

Lennar Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Lennar's Q4 2022 earnings were reported, showcasing growth in net earnings and home deliveries, offset by a decrease in new orders.

Lennar reported strong Q4 2022 results with a 21% increase in total revenues to $10.2 billion and a 16% increase in net earnings per diluted share to $4.55. Home deliveries rose by 13% to 20,064 homes. However, new orders decreased by 15% to 13,200 homes, and the backlog also saw a decline.

  • Net earnings per diluted share increased 16% to $4.55.
  • Total revenues increased 21% to $10.2 billion.
  • Home deliveries increased 13% to 20,064 homes.
  • New orders decreased 15% to 13,200 homes.

Headline financials

Total Revenue

$10.2B

Previous: $8.43B+20.6%
EPS (adj)

$5.02

Previous: $4.36+15.1%
New Orders

13.2K

Previous: 15.5K-15.1%
Debt to Total Capital

14.4%

Previous: 18.3%-21.3%
Capital Expenditures

$29.7M

Previous: $25.2M+17.7%
Free Cash Flow

$2.68B

Previous: $1.2B+124.6%
Net Income

$1.32B

Previous: $1.19B+11.1%
Operating Income

$1.76B

Previous: $1.58B+11.3%
Gross Profit

$2.4B

Previous: $2.2B+9.1%
Cash & Equivalents

$4.62B

Previous: $2.74B+68.8%
Total Assets

$38B

Previous: $33.2B+14.4%
Stock-Based Comp

$29.4M

Previous: $29.2M+0.5%

Revenue & EPS history

Lennar · Revenue · Quarterly

$10.2B

Q4 2022+20.6%vs Q4 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lennar · $10.2B total across 4 segments · Q4 2022

  • Homebuilding
    $9.74B+21.5%
  • Financial Services
    $231M+0.8%
  • Multifamily
    $179M-4.9%
  • Lennar Other
    $22.8M+3881.3%

Forward guidance

For the first quarter of 2023, Lennar anticipates deliveries to be in the range of 12,000 to 13,500 homes with a gross margin of about 21%. For the full year 2023, the company expects deliveries to be between 60,000 and 65,000 homes.

Tailwinds

  • Deliveries for Q1 2023 are expected to be between 12,000 and 13,500 homes.
  • Gross margin for Q1 2023 is expected to be approximately 21%.
  • Full year 2023 deliveries are projected to be between 60,000 and 65,000 homes.
  • The company maintains a strong balance sheet with significant liquidity.
  • Lennar is positioned to outperform in uncertain market conditions.

Headwinds

  • Interest rates are expected to continue fluctuating.
  • The housing market will continue to rebalance pricing and interest rates.
  • New orders in Q4 2022 were down 15% year-over-year.
  • Cancellation rate increased to 26% compared to 12% last year.
  • Sales volume and pricing have been impacted by rising interest rates.

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 Q4 2022

Historical avgQ4 2022

+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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