NYSE$LEN

Lennar Corp · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Lennar reported Q4 2024 results, with net earnings of $1.1 billion and EPS of $4.06.

Lennar's Q4 2024 results showed a decrease in net earnings compared to the prior year, impacted by rising mortgage rates. While demand remained strong, new orders fell short of expectations. The company focused on managing inventory levels and maintaining a strong balance sheet.

  • Net earnings per diluted share were $4.06, or $4.03 excluding mark-to-market gains on technology investments.
  • Total revenues reached $9.9 billion, with homebuilding revenues at $9.5 billion.
  • New orders decreased by 3% to 16,895 homes, while deliveries decreased by 7% to 22,206 homes.
  • The company repurchased 3 million shares of Lennar common stock for $521 million.

Headline financials

Total Revenue

$9.95B

Previous: $11B-9.3%
EPS (adj)

$4.03

Previous: $5.17-22.1%
Home Deliveries

22.2K

No prior period
New Orders

16.9K

No prior period
Debt to Total Capital

7.5%

No prior period
SG&A as % of Sales

7.2%

No prior period
Gross Margin

22.1%

No prior period
Capital Expenditures

-$41.4M

Previous: $46.2M-189.6%
Net Income

$1.1B

Previous: $1.36B-19.2%
Operating Income

$1.46B

Previous: $1.78B-18.3%
Gross Profit

$2.1B

Previous: $2.5B-16.0%

Revenue & EPS history

Lennar · Revenue · Quarterly

$9.95B

Q4 2024-9.3%vs Q4 2023
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

The Company expects to deliver between 17,000 and 17,500 homes for the first quarter of 2025 and between 86,000 and 88,000 homes for the full year 2025, including the impact of the Rausch Coleman acquisition. They expect our gross margin in the first quarter to be between 19.0% and 19.25%.

Tailwinds

  • Deliveries between 17,000 and 17,500 homes for Q1 2025.
  • Deliveries between 86,000 and 88,000 homes for the full year 2025, including the impact of the Rausch Coleman acquisition.
  • Gross margin in the first quarter to be between 19.0% and 19.25%.
  • Focus on volume-based strategy of driving sales and cash flow.
  • Migration to an asset-light, land-light business model.

Headwinds

  • Sales pace lagged expectations as interest rates climbed.
  • New orders fell short of expectations to 16,895 homes vs the low end of our guidance of 19,000 homes.
  • Housing market proved to be far more challenging as mortgage rates rose almost 100 basis points through the quarter.
  • Affordability limitations from higher interest rates impacted results.
  • Will not guide to full year gross margin until we have a better sense of market conditions as the year unfolds.

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 2024

Historical avgQ4 2024

+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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