On Dec 15, 2021, Lennar Corp. (LEN) reported its fourth quarter and fiscal 2021 results. Earnings missed while revenue beat market expectations. Supply chain and lumber price issues continue to linger. Pre-market today, LEN stock dropped 4.68%.
Quarterly Revenue Ahead of Expectations
Lennar posted fiscal fourth-quarter revenue of $8.43 billion, beating market expectations.
Quarterly Earnings Miss
Lennar's fiscal fourth-quarter net earnings were $1.19 billion (an increase of around 35%), coming out to $3.91 per share, below predictions of around $4.15 per share. Earnings bumped up to $4.36 for the quarter when “excluding mark to market losses on strategic technology investments.”
Supply Chain Issues
Jon Jaffe, Co-Chief Executive Officer, said, “During the quarter, our homebuilding machine continued to be laser-focused on production, even while our cycle time expanded about two weeks from the third quarter driven by rapidly changing supply chain issues. The impact of supply chain issues and increased cycle times were partially offset by accelerated construction starts throughout the year.”
Fiscal 2021 Results
Here are some of the key takeaways from the company’s full-year fiscal 2021 results:
- Net earnings per diluted share increased 82% to $14.27 per share
- Net earnings increased 80% to $4.4 billion
- Revenues up 21% to $27.1 billion
2022 Guidance
Lennar plans on delivering around 67,000 homes — with an average sales price per unit of around $460,000 — in 2022. Financial services operating earnings for the full year are estimated to land somewhere in the $440 million to $450 million range.
