Lennar Reports Q1 Net Income of $229M; Revenue Falls to $6.62B, EPS Misses Estimates
Lennar posted Q1 net earnings of $229 million ($0.93 per share), down from $520 million a year earlier, with adjusted EPS of $0.88 missing analysts’ 96-cent forecast. Revenue declined to $6.62 billion as home deliveries fell 5% to 16,863 and gross margin narrowed to 15.2%.
1. Q1 Financial Performance
Lennar reported first-quarter net earnings of $229 million, or $0.93 per diluted share, down from $520 million, or $1.96 per share, a year earlier. Adjusted earnings of $0.88 per share fell short of the 96-cent consensus, with revenue declining to $6.62 billion.
2. Homebuilding Operational Metrics
New home orders rose 1% year over year to 18,515 homes, and backlog stood at 15,588 homes valued at $6.0 billion. Deliveries decreased 5% to 16,863 units, and the average sales price dropped to $374,000 as incentives averaged 14% of base price.
3. Margin and Cost Developments
The home sales gross margin contracted to 15.2%, while SG&A expenses represented 9.8% of revenues, yielding a net margin of 5.3%. Construction costs improved over 2.5% in the quarter and cycle time shortened to a record-low 122 days, boosting inventory turns to 2.5x.
4. Second-Quarter Outlook
Lennar expects to deliver 20,000 to 21,000 homes in Q2 with gross margin expanding to 15.5%–16% and SG&A improving to 8.9%–9.1% as spring selling season volume unfolds.