$LEN (-1,16%) During Q4 FY2024, Lennar navigated challenging conditions as rising interest rates constrained housing affordability. Despite resilient demand driven by a chronic supply shortage, net earnings fell YoY due to adjusted pricing, rising land costs, and margin compression.
📊 Income Statement Highlights (vs. Q4 FY2023):
▫️ Net Income: $1.10B vs. $1.37B (-19.32%)
▫️ Total Revenue: $9.95B vs. $10.97B (-9.30%)
▫️ Adjusted EPS: $4.03 vs. $5.17 (-22.05%)
▫️ Gross Margin on Home Sales: 22.1% vs. 24.2%
▫️ Operating Earnings - Homebuilding: $1.50B vs. $1.91B (-21.75%)
▫️ SG&A Expenses (% of Revenues): 7.2% vs. 6.6%
▫️ New Orders (Homes): 16,895 (-3%)
▫️ New Orders (Value): $7.18B (-1%)
▫️ Average Sales Price: $430K (-2.49%)
💼 Balance Sheet Highlights (vs. Nov 30, 2023):
▫️ Total Assets: $41.31B (+5.29%)
▫️ Cash and Cash Equivalents: $4.66B (-25.69%)
▫️ Inventory (Owned & Consolidated): $19.72B (+7.43%)
▫️ Homebuilding Debt to Total Capital: 7.5% (improved from 9.6%)
▫️ Equity: $27.87B (+4.86%)
🔮 Future Outlook:
- Lennar plans to deliver 17,000-17,500 homes in Q1 FY2025 at an average price of $410K-$415K.
- FY2025 target: 86,000-88,000 home deliveries, reflecting its acquisition of Rausch Coleman Homes.
- Gross margins in Q1 FY2025 expected to range between 19%-19.25%, reflecting continued adjustments to market conditions.