Lennar, the renowned home builder, reported impressive financial results for the fiscal fourth quarter ending November 30. The company’s revenue witnessed a significant increase, courtesy of exceeding house delivery and new order expectations.
Robust Performance and Solid Profits
Lennar’s net profit for the quarter amounted to $1.36 billion, translating to $4.82 per share. This represents a growth from $1.32 billion, or $4.55 per share, during the same period the previous year. Analysts surveyed by FactSet had predicted earnings per share of $4.59—easily surpassed by Lennar.
Surpassing Revenue Estimates
The company achieved a revenue of $10.97 billion, showcasing an impressive growth of 7.8%. Analysts had forecasted revenue of $10.22 billion, making Lennar’s performance even more remarkable.
Increments in House Deliveries and New Orders
Lennar delivered a total of 23,795 homes during the quarter, marking a substantial increase of 19% compared to the previous year. Moreover, the company experienced a surge of 32% in new orders, with the figure reaching 17,366. Despite the positive news, Lennar did witness a slight decline in its average sales price. The average sales price dropped to $441,000 from approximately $500,000 recorded last year.
Exceptional Balance Sheet Strength
The Co-Chief Executive of Lennar, Stuart Miller, expressed his enthusiasm regarding the company’s strong financial position. Miller stated, “With cash on hand exceeding our debt, and with overall liquidity of $8.9 billion, our balance sheet has never been in a stronger position.”
Lennar’s outstanding performance in the fourth quarter showcases its resilience and ability to excel in challenging market conditions. This success provides a strong foundation for the company’s continued growth and prosperity in the future.
