Lennar Corp. exceeds third-quarter projections with $5.9B in revenues
Lennar Corporation, one of the largest home builders in the U.S., has exceeded its projected revenues for the 2020 third quarter by 6.1%, with revenues of $5.9 billion.
The report, which was released Sept. 14, shows net earnings of $666.4 million, or $2.12 per diluted share, over $513.4 million net earnings, or $1.59 per diluted share over the same period last year.
“Our third quarter results benefited from robust market conditions combined with the solid execution of our homebuilding and financial services businesses,” said Stuart Miller, chairman of Lennar, in a press release.
“Fundamentals in the housing market continued to remain strong supported by record low interest rates and a continued under-supply of new and existing inventory,” he said. “The housing market continued its strong rebound from the significantly weaker sales environment earlier in the year as a result of COVID-19.”
The Doral-based corporation reported a 2% increase in the number of delivered homes (13,842). The report says the small year-over-year increase was due to the COVID-19 slowdown. But the company also reported a 16% increase in the number of new home orders (15,564) at an estimated value of $6.3 billion.
Due to strong demand and limited inventory of single-family homes, Lennar projects fourth-quarter closings of 15,500-16,000 homes and fourth-quarter sales of 13,800-14,300 homes.
Lennar also paid down $400 million of debt during the third quarter and borrowed no money from its $2.4 billion revolving credit.
“The housing market has proven to be resilient in the current environment and we expect it to continue to be a significant driver in the recovery of the overall economy,” Miller said. “With an excellent balance sheet, strong cash flow generation and continued execution of our core operating strategies, we expect to end 2020 with another very strong quarter and be extremely well positioned for an even stronger 2021.”
Founded in 1954, Lennar is the second largest home builder in the U.S. First is D.R. Horton, which reported net income of $1.5 billion in its third quarter report.
This story was originally published September 16, 2020 at 11:47 AM.
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