NYSE$LEN

Lennar Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Lennar reported strong Q4 2023 results driven by increased deliveries and new orders, despite a decrease in average sales price.

Lennar Corporation reported Q4 2023 net earnings of $1.4 billion, or $4.82 per diluted share. Total revenues were $11.0 billion, driven by a 19% increase in home deliveries and a 32% increase in new orders. The company's focus on production pace and sales pace resulted in strong cash flow and a strengthened balance sheet.

  • Net earnings per diluted share were $4.82, or $5.17 excluding adjustments.
  • New orders increased 32% to 17,366 homes, with a dollar value of $7.3 billion.
  • Deliveries increased 19% to 23,795 homes.
  • Homebuilding debt to total capital improved to 9.6%.

Headline financials

Total Revenue

$11B

Previous: $10.2B+7.8%
EPS (adj)

$5.17

Previous: $5.02+3.0%
Capital Expenditures

$46.2M

Previous: $29.7M+55.6%
Free Cash Flow

$2.54B

Previous: $2.68B-5.3%
Net Income

$1.36B

Previous: $1.32B+2.9%
Operating Income

$1.78B

Previous: $1.76B+1.4%
Gross Profit

$2.5B

Previous: $2.4B+4.2%
Cash & Equivalents

$6.27B

Previous: $4.62B+35.9%
Total Assets

$39.2B

Previous: $38B+3.3%
Stock-Based Comp

$21.1M

Previous: $29.4M-28.2%

Revenue & EPS history

Lennar · Revenue · Quarterly

$11B

Q4 2023+7.8%vs Q4 2022
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lennar · $11B total across 4 segments · Q4 2023

  • Homebuilding
    $10.5B+7.9%
  • Financial Services
    $305M+32.1%
  • Multifamily
    $141M-21.4%
  • Lennar Other
    $6.62M-71.0%

Forward guidance

Lennar expects to deliver approximately 80,000 homes for the year, with 16,500 to 17,000 homes at a gross margin of between 21.0% to 21.25% in the first quarter of 2024.

Tailwinds

  • Expected delivery growth rate of 10% in 2024.
  • Strong land position and community count.
  • Pace over price sales strategy.
  • Interest rates are expected to moderate in 2024.
  • Increased share repurchase target to $2 billion in 2024.

Headwinds

  • First quarter gross margin on home sales expected to be between 21.0% and 21.25%.
  • S,G&A as a % of Home Sales is expected to be 8.0% - 8.2% for the first quarter of 2024.
  • Financial Services Operating Earnings is expected to be $85 million - $90 million for the first quarter of 2024.
  • Full year margin guidance is not provided due to the rapidly evolving interest rate environment.
  • Potential impact of inflation.

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 2023

Historical avgQ4 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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