Lennar Corporation’s (LEN – Free Report) shares have gained 7.5% in pre-market trading, after surpassing earnings as well as revenue expectations in the second quarter of fiscal 2018 – the first full quarter with CalAtlantic.
The company’s second-quarter adjusted earnings of $1.58 per share surpassed the Zacks Consensus Estimate of 45 cents. The reported figure mainly excludes integration costs related to the acquisition of CalAtlantic Group, Inc. and backlog/construction in progress write-up related to purchase accounting. Including these items, the reported figure came in at 94 cents per share in the quarter, increasing considerably from the year-ago profit level of 89 cents per share.
The improvement was primarily attributable to greater demand for homes accompanied with higher prices.
Total revenues of $5.46 billion beat the Zacks Consensus Estimate of $5.23 billion. Revenues also increased 67% year over year as the Homebuilding, Financial Services and Multifamily segments performed significantly well.
Lennar Corporation Price, Consensus and EPS Surprise
Lennar Corporation Price, Consensus and EPS Surprise | Lennar Corporation Quote
Segment Details
Homebuilding: The segment’s revenues increased 75.5% from the prior-year quarter to $5.06 billion, driven by higher number of homes delivered and greater average selling prices. Within the Homebuilding umbrella, home sales constituted $5 billion (up 74% year over year) and land sales amounted to $78 million (up from $15.4 million a year ago).
New home orders increased 62% from the year-ago quarter to 14,440. Potential value of net orders increased 79% year over year to $6 billion.
Home deliveries increased 57% from the prior-year quarter to 12,095, buoyed by higher number of homes delivered across all homebuilding segments, courtesy of significant increase in volume resulting from the CalAtlantic acquisition.
The average selling price (ASP) of homes delivered was $413,000, reflecting an increase of 10.4% year over year.
In the quarter under review, backlog grew 92% from the year-ago quarter to 19,622 homes. Potential housing revenues from backlog increased 114% year over year to $8.6 billion.
