Financial Data and Key Metrics Changes - The company reported a year-over-year increase in starts by 8% to almost 20,250 homes, new orders increased by 5% to nearly 20,600, and deliveries rose by 16% to just over 21,500 homes [20][21] - The gross margin was reported at 22.5%, lower than expected, while the net margin was higher than expected at 15.8%, driven by operating efficiencies [21][22] - Earnings per share, excluding one-time items, were $3.90, with guidance for Q4 EPS expected to be in the range of $4.10 to $4.25 [21][51] Business Line Data and Key Metrics Changes - The Financial Services segment had operating earnings of $144 million, consistent with the prior year, despite lower lock volume in the mortgage business [43] - The Multifamily segment reported operating earnings of $79 million, primarily driven by a gain on the sale of assets, with a net gain of $179 million recorded [44] Market Data and Key Metrics Changes - The company noted a chronic housing shortage exacerbated by underproduction and higher construction costs, with housing starts reported at 1.36 million [11][12] - The company expects to deliver between 80,500 and 81,000 homes in 2024, representing a more than 10% increase over 2023 [20][35] Company Strategy and Development Direction - The company is transitioning to an asset-light model, focusing on volume and operational efficiencies while reducing owned land supply from three years to an expected 1.1 years by year-end [16][30] - The planned spin-off of Millrose Properties Inc. as a Real Estate Investment Trust (REIT) aims to enhance capital efficiency and provide a permanent source of land acquisition and development capital [27][30] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market, citing strong demand driven by lower interest rates and controlled inflation, which are expected to enhance affordability [8][10] - The company anticipates a steady state growth rate of around 10% in the long term, supported by a focus on asset-light operations and addressing the housing supply constraints [64][65] Other Important Information - The company has paid down approximately $4.9 billion of debt and repurchased about 50 million shares for approximately $5.7 billion since 2020, resulting in a debt to total capital ratio of 7.6% [17][48] - The company ended the quarter with $4 billion in cash and no borrowings on its revolving credit facility, providing total liquidity of $6.2 billion [45][48] Q&A Session Summary Question: Insights on Millrose and its impact on margins - Management indicated that Millrose will operate with a permanent capital structure, which is expected to have a relatively small impact on margins compared to current land banking structures [54][56] Question: Expectations on gross margin for Q4 - Management noted that the stickiness of interest rates and consumer confidence issues contributed to a revised outlook for flat gross margins in Q4, despite a decrease in rates later in the quarter [58][60] Question: Long-term volume growth expectations - Management is targeting a steady state growth rate of around 10%, emphasizing the need for additional housing supply as interest rates decline [64][65] Question: Operating margins compared to peers - Management acknowledged that the focus has been on operational efficiencies and volume growth, with expectations for operating margins to improve as the asset-light model is fully implemented [66][68]

Group 1 - Lennar Corporation reported fiscal third-quarter results that exceeded expectations for both revenue and earnings, with revenue growing 9% year-over-year to $9.4 billion and earnings per diluted share rising to $4.26 [1][2] - The company guided for no quarter-over-quarter growth in gross margin on home sales, expecting it to remain flat at 22.5%, which is below analyst consensus [1][2] - New home orders are projected to be between 19,000 and 19,300, with an average sales price of $425,000, aligning with market estimates [1] Group 2 - CEO Stuart Miller highlighted a favorable environment for homebuilders, citing strong employment, chronic housing supply shortages, and solid demand driven by household formation [2] - Despite the positive economic backdrop, Lennar's shares fell by 4% in recent trading, reflecting investor concerns over the guidance provided [2]

Core Viewpoint - Lennar Corporation (LEN) reported third-quarter fiscal 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, although earnings showed a slight decline year-over-year, leading to a drop in stock price due to investor concerns over lower earnings and gross margin, along with cautious fourth-quarter guidance [1][2]. Quarterly Numbers - Adjusted earnings per share (EPS) were $3.90, surpassing the Zacks Consensus Estimate of $3.62 by 7.7%, but down 0.3% from $3.91 a year ago [2]. - Revenues reached $9.42 billion, exceeding the Zacks Consensus Estimate of $9.29 billion by 1.4% and increasing 7.9% from $8.73 billion year-over-year [2]. Segment Details - Homebuilding segment revenues totaled $9.05 billion, an 8.7% increase from the prior-year quarter, with home sales contributing $9.02 billion, up 8.8% [3]. - Home deliveries improved 16% year-over-year to 21,516 units, exceeding projections, while the average sales price (ASP) of homes delivered was $422,000, down 5.8% from the previous year [3]. - New orders rose 5% year-over-year to 20,587 homes, but the potential value of net orders fell 0.9% to $8.56 billion [4]. - Backlog declined 20.5% year-over-year to 16,944 homes, with potential housing revenues from backlog decreasing 21.4% to $7.75 billion [4]. - Gross margin on home sales was 22.5%, down 190 basis points from the previous year, attributed to decreased revenues per square foot and increased land costs [4]. - Financial Services segment revenues increased to $273.3 million from $266.2 million year-over-year, with operating earnings rising to $144.4 million [4][5]. Financials - At the end of the fiscal third quarter, Lennar had cash and cash equivalents of $4.04 billion, down from $6.27 billion at the end of fiscal 2023, with no outstanding borrowings under its $2.2 billion revolving credit facility [6]. - Total homebuilding debt was $2.26 billion, down from $2.82 billion at the fiscal 2023-end, with homebuilding debt to capital at 7.6% [6]. - The company repurchased 3.4 million shares for $519 million during the fiscal third quarter [6]. Guidance - For fourth-quarter fiscal 2024, Lennar expects deliveries between 22,500-23,000 homes, a decrease from 23,795 homes delivered in the prior year, with an expected ASP of nearly $425,000 [7]. - Gross margin on home sales is anticipated to remain flat year-over-year, with SG&A expenses projected to be in the range of 6.7-6.8% [7]. - New orders are expected to be between 19,000-19,300 units, up from 17,366 homes reported a year ago [7]. - Financial Services operating earnings are expected to be around $140 million, down from $168 million a year ago [7].

For the quarter ended August 2024, Lennar (LEN) reported revenue of $9.42 billion, up 7.9% over the same period last year. EPS came in at $3.90, compared to $3.91 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $9.29 billion, representing a surprise of +1.35%. The company delivered an EPS surprise of +7.73%, with the consensus EPS estimate being $3.62.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectat ...

Lennar (LEN) came out with quarterly earnings of $3.90 per share, beating the Zacks Consensus Estimate of $3.62 per share. This compares to earnings of $3.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.73%. A quarter ago, it was expected that this homebuilder would post earnings of $3.20 per share when it actually produced earnings of $3.38, delivering a surprise of 5.63%.Over the last four quarters, the company has surp ...

Exhibit 99.1 Contact: Ian Frazer Investor Relations Lennar Corporation (305) 485-4129 FOR IMMEDIATE RELEASE Lennar Reports Third Quarter 2024 Results Third Quarter 2024 Highlights - comparisons to the prior year quarter • Net earnings per diluted share increased 10% to $4.26 ◦ $3.90, excluding mark-to-market gains on technology investments and one-time items in the Company's Multifamily segment • Net earnings increased 5% to $1.2 billion • New orders increased 5% to 20,587 homes • Backlog of 16,944 homes wi ...

Key TakeawaysHomebuilders shares rose after the Fed announced a 50 basis point interest rate cut Wednesday. Bank of America increased its price target for seven hombuilders by an average of 11%. Lennar will report earnings after the bell Thursday, with KB Home reporting next week. Homebuilder stocks are rising a day after the Federal Reserve kicked off its rate-cutting cycle, lowering the benchmark rate by half a percentage point. A lower federal funds rate exerts downward pressure on mortgage rates, which ...

Lennar Corporation LEN will release earnings results for its third quarter, after the closing bell on Thursday, Sept. 19.Analysts expect the Miami, Florida-based company to report quarterly earnings at $3.63 per share, down from $3.87 per share in the year-ago period. Lennar projects to report revenue of $9.16 billion for the quarter, compared to $8.45 billion a year earlier, according to data from Benzinga Pro.On June 17, Lennar reported quarterly earnings of $3.38 per share, which beat the analyst consens ...

Warren Buffett-led Berkshire Hathaway Inc.’s (BRK.B) portfolio hasn’t fared badly against the S&P 500’s return amid a higher interest rate environment. However, Buffett hopes for interest rate cuts like several market pundits as it would jack up the share price of two of his beloved housing stocks NVR, Inc. (NVR) and Lennar Corporation (LEN) . Here’s why – Freddie Mac Report: U.S. Mortgage Rates DropAccording to Freddie Mac, for the week ending Sept. 12, the 30-year fixed-rate mortgage slipped to its lowest ...

Lennar Corporation (LEN) is slated to report third-quarter fiscal 2024 results (ended Aug. 31) after the closing bell on Sept. 19. Image Source: Zacks Investment Research In the last reported quarter, the company's earnings and total revenues topped the Zacks Consensus Estimate by 5.6% and 2.2%, respectively. It is to be noted that this Miami-based homebuilder surpassed earnings expectations in the trailing 21 quarters. On a year-over-year basis, fiscal second-quarter earnings and revenues increased 15% and ...