Lennar (LEN) Earnings Results for 2021 Q1

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 company recently announced strong financial results for the first quarter, partly helped by low mortgage rates. Lennar reporting earnings of $1.0 billion, or $3.20 per share for the three months ended February 28, translating to a surge of more than two folds from the comparable period of 2020.

Excluding certain items, Lennar posted an adjusted profit of $2.04 per share, easily beating analysts’ average estimate of $1.71 per share. Revenue came in at $5.33 billion, up 18 percent from the year-ago quarter, and ahead of the consensus forecast.

Lennar’s orders jumped 25.8 percent on a year-over-year basis to 15,570 homes, while deliveries in the quarter rose 19 percent to 12,314 homes.

Speaking on the results, CEO Stuart Miller said in a statement, “In spite of a recent uptick in interest rates, the housing market remains very strong across the country. A combination of still low-interest rates, strong personal savings rates during the pandemic, strong stimulus from the government, and solid household formation continue to drive demand, while the housing shortage driven by 10 years of a production shortfall, defines a constrained supply. This combination indicates a sustained strong housing market with pricing power keeping pace with cost increases.”

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Looking forward, Lennar projected new home orders in the range of 16,500 to 16,700 for the second quarter, above analysts’ average forecast of 16,240.  Lennar stock jumped nearly 14 percent on Wednesday following the latest quarterly performance and outlook.

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