Lennar Corp (NYSE: LEN) reported its financial results for the third quarter on Monday that beat Wall Street estimates.
Supply chain constraints
Shares of the company, however, fell another 3.0% in extended trading after closing the regular session about 3.0% down already, as investors focused on home deliveries that came in weaker than expected due to supply chain constraints. Executive Chairman Stuart Miller said:
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During Q3, our company and the homebuilding industry as a whole continued to experience unprecedented supply chain challenges, which we believe will continue into the foreseeable future. As a result, our Q3 deliveries were below the low end of our guidance. Additionally, we are adjusting our Q4 delivery guidance to, more or less, 18,000 homes, reflecting this supply chain constraint.
Q3 financial performance
Lennar said its net income in the third quarter printed at $1.41 billion that translates to $4.52 per share. In the comparable quarter of last year, its net income was capped at $670 million or $2.12 per share.
The 2nd largest U.S. homebuilder generated $6.94 billion in revenue that represents an annualised growth of 18.2%. In comparison, analysts had forecast $3.28 of per-share earnings on $6.87 billion in revenue.
Other notable figures
Lennar Corp delivered 15,199 homes in the third quarter versus the year-ago figure of 13,842. It also benefitted from an 8.0% increase in average home price to $428,000 in Q3. Other notable figures included orders which jumped 4.6% in the recent quarter to 16,277 homes.
Gross margin on homes sales also climbed from 23.1% to 27.3%, as per the earnings press release. The $30 billion company now has a price to earnings ratio of 9.09.
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