Lennar (LEN) Beats Expectations for 2021 Q2

Lennar Corp (NYSE:LEN) has been around for nearly 67 years. It started as a residential home building company. Over the years, it stepped into new segments such as investments and financial services to limit its dependence on home construction. By the 90s, Lennar was designing, constructing, and selling all kinds of residential housing, with a core focus on first-time home buyers. Today, it not only builds homes but also offers financial services related to real estate.

The Florida-based homebuilder recently announced better-than-expected financial results for the second quarter. The solid quarterly performance was mainly driven by elevated demand for spacious homes due to the remote working trend following the pandemic.

Lennar reported earnings of $2.65 per share for the three months ended May 31, well above $1.65 per share in the comparable period of 2020. Excluding items, the company earned $2.95 per share, easily surpassing analysts’ average estimate of $2.38 per share.

Revenue for the quarter jumped 22 percent on a year-over-year basis to $6.4 billion, ahead of the consensus forecast of $6.1 billion. Total deliveries surged 14 percent to 14,493 homes, while new orders climbed 32 percent to 17,157 units.

Speaking on the results, Lennar’s Executive Chairman Stuart Miller said in a statement, “During the second quarter, the housing market remained very strong across the country, even as interest rates mildly ticked up. A combination of strong personal savings rates during the pandemic, strong stimulus from the government and a developing return to normalcy continued to drive the economy forward while bringing the housing market to new heights.”

Lennar also issued its homebuilding outlook for the third quarter. It is anticipating new orders in the range of 16,000-16,300 units and deliveries between 15,800 and 16,100 units for the current quarter.