LONDON, UK / ACCESSWIRE / January 18, 2018 / Active-Investors.com has just released a free earnings report on Lennar Corp. (NYSE: LEN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=LEN. The Company reported its fourth quarter and fiscal 2017 operating and financial results on January 10, 2018. The homebuilder exceeded revenue expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Lennar most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the three months ended November 30, 2017, Lennar's revenue grew 12% to $3.79 billion compared to $3.38 billion in Q4 FY16. The Company's revenue numbers topped analysts' estimates of $3.62 billion.
During Q4 FY17, Lennar reported deliveries of 8,633 homes, up 5% on a y-o-y basis. The Company posted new orders of 7,357 homes in the reported quarter, up 12% on a y-o-y basis, with new orders dollar value of $2.8 billion, up 18% compared to the year ago same period. Lennar opened 84 new communities and closed 77 communities during Q4 FY17, to end the reported quarter with 765 net active communities. At the end of Q4 FY17, Lennar had a backlog of 8,935 homes, up 17% on a y-o-y basis, with a backlog dollar value of $3.6 billion, up 23% compared to the year ago same period.
For Q4 FY17, net earnings were $309.6 million, or $1.29 per diluted share, compared to $313.5 million, or $1.31 per diluted share in Q4 FY16, as adjusted for Class B stock dividend. The Company's earnings fell short of Wall Street's estimates of $1.50 per share.
The Company's net earnings were $810.5 million, or $3.38 per diluted share, for the year ended November 30, 2017, compared to $911.8 million, or $3.86 per diluted share, for the year ended November 30, 2016, as adjusted for Class B stock dividend.
During Q4 FY17, Lennar's revenues from home sales increased 14% to $3.3 billion compared to $2.9 billion in Q4 FY16, primarily due to a 5% increase in the number of home deliveries, excluding unconsolidated entities, and an 8% growth in the average sales price of homes delivered.
New home deliveries, excluding unconsolidated entities, increased to 8,614 homes in Q4 FY17, versus 8,206 homes in Q4 FY16. The average sales price of homes delivered, excluding unconsolidated entities, increased to $387,000 in the reported quarter compared to $357,000 in Q4 FY16. Sales incentives offered to homebuyers were $23,500 per home delivered, or 5.7% as a percentage of home sales revenue, in Q4 FY17 versus $23,700 per home delivered, or 6.2% as a percentage of home sales revenue, in the year ago comparable period.
During Q4 FY17, Lennar's gross margins on home sales were $747.5 million, or 22.4%, compared to $683.5 million, or 23.3%, in Q4 FY16, with the decline attributed to an increase in land and construction costs per home. The Company's selling, general, and administrative expenses (SG&A), as a percentage of revenues from home sales, improved to 8.4% in the reported quarter from 8.7% in the prior year's corresponding quarter, primarily due to a decrease in external broker commissions as a percentage of revenues from home sales and improved operating leverage.
Segment Results
Lennar Homebuilding - The Company's Lennar Homebuilding segment reported operating earnings of $478.8 million in Q4 FY17 compared to $436.7 million in Q4 FY16. At the end of Q4 FY17, the segment had cash and cash equivalents of $2.3 billion. Lennar Homebuilding segment's debt to total capital, net of cash and cash equivalents, was 34.4% at the end of the reported quarter.
Lennar Financial Services - During Q4 FY17, the Company's Lennar Financial Services segment's operating earnings were $42.1 million compared to $51.4 million in Q4 FY16. The decline in operating earnings was primarily attributed to a decreased profitability in the segment's mortgage operations as a result of a significant decline in refinance transactions.
Rialto - For Q4 FY17, Lennar's Rialto segment's operating earnings were $2.2 million compared to $8.0 million in Q4 FY16. The decline in operating earnings was primarily due to a decrease in Rialto Mortgage Finance (RMF) securitization revenues as a result of lower volume and an increase in REO and loan impairments.
Lennar Multifamily - The Company's operating earnings for the Lennar Multifamily segment were $38.6 million in Q4 FY17 compared to $41.4 million in Q4 FY16. The decline in profitability was primarily due to the segment's $43.8 million share of gains related to the sale of two operating properties by Lennar Multifamily's unconsolidated entities in the reported quarter compared to the segment's $47.2 million share of gains related to the sale of four operating properties by Lennar Multifamily's unconsolidated entities in the prior year quarter.
Stock Performance Snapshot
January 17, 2018 - At Wednesday's closing bell, Lennar's stock climbed 2.81%, ending the trading session at $70.71.
Volume traded for the day: 3.40 million shares.
Stock performance in the last month - up 15.65%; previous three-month period - up 28.78%; past twelve-month period - up 62.02%; and year-to-date - up 11.81%
After yesterday's close, Lennar's market cap was at $16.29 billion.
Price to Earnings (P/E) ratio was at 20.36.
The stock has a dividend yield of 0.23%.
The stock is part of the Industrial Goods sector, categorized under the Residential Construction industry. This sector was up 0.7% at the end of the session.
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