Lennar posts strong Q3
Lennar, the second-largest U.S. home builder, reported third quarter 2018 revenues from home sales increased 83% to $5.2 billion from $2.8 billion in the third quarter of 2017.
Revenues were higher primarily due to a 66% increase in the number of home deliveries, excluding unconsolidated entities, and a 10% increase in the average sales price of homes delivered, the company said.
Net earnings attributable to Lennar for the third quarter were $453.2 million, nearly an 82% increase from net earnings attributable to Lennar of $249.2 million for the third quarter 2017.
New home deliveries, excluding unconsolidated entities, increased to 12,600 homes in the third quarter of 2018 from 7,588 homes in the third quarter of 2017, primarily as a result of the significant increase in volume resulting from the CalAtlantic acquisition this past February, the company said.
The average sales price of homes delivered was $415,000 in the third quarter of 2018, compared to $375,000 in the third quarter of 2017 – nearly an 11% increase in price.
"While national economic data has pointed to higher prices and rising interest rates causing slower overall sales, the basic underlying fundamentals of the housing industry of low unemployment, higher wages and low inventory levels remain favorable and are likely to support longer-term strength in the housing market,” said Stuart Miller, executive chairman of Lennar.
Looking ahead, Jon Jaffe, president and chief operating officer of Lennar, said, "With the CalAtlantic integration substantially completed, we are keenly focused on direct construction cost savings. The strategy of achieving material scale in local markets is playing out as planned and fits right into our focus of being the 'Builder of Choice' for national manufacturers, suppliers and local trades."
Noting the impact of Hurricane Florence, Lennar lowered its expectations for fourth quarter home deliveries to 14,500 from a previous forecast of 15,000.
Revenues were higher primarily due to a 66% increase in the number of home deliveries, excluding unconsolidated entities, and a 10% increase in the average sales price of homes delivered, the company said.
Net earnings attributable to Lennar for the third quarter were $453.2 million, nearly an 82% increase from net earnings attributable to Lennar of $249.2 million for the third quarter 2017.
New home deliveries, excluding unconsolidated entities, increased to 12,600 homes in the third quarter of 2018 from 7,588 homes in the third quarter of 2017, primarily as a result of the significant increase in volume resulting from the CalAtlantic acquisition this past February, the company said.
The average sales price of homes delivered was $415,000 in the third quarter of 2018, compared to $375,000 in the third quarter of 2017 – nearly an 11% increase in price.
"While national economic data has pointed to higher prices and rising interest rates causing slower overall sales, the basic underlying fundamentals of the housing industry of low unemployment, higher wages and low inventory levels remain favorable and are likely to support longer-term strength in the housing market,” said Stuart Miller, executive chairman of Lennar.
Looking ahead, Jon Jaffe, president and chief operating officer of Lennar, said, "With the CalAtlantic integration substantially completed, we are keenly focused on direct construction cost savings. The strategy of achieving material scale in local markets is playing out as planned and fits right into our focus of being the 'Builder of Choice' for national manufacturers, suppliers and local trades."
Noting the impact of Hurricane Florence, Lennar lowered its expectations for fourth quarter home deliveries to 14,500 from a previous forecast of 15,000.