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Originally posted by jiesen
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LEN is back to 116, and setting a 52 week high here. Can I just copy and paste my 2021 post and say it again? Maybe I will! But maybe we'll actually see 118 tomorrow or Friday this week and I can finally sell this one! -
Another day, another dollar closer to 118... this one is so ready to hit right now, I can almost taste it... c'mon LEN!!! just $2 more, and let's call it a day, shall we?Originally posted by jiesen View PostComment
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ah well, easy come, easy go... I guess we'll have to wait another week or three.Comment
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LEN is teasing us yet again... from 107-108 yesterday back up to 112 today. When can we see 118? Who knows, but it's just gotta be soon!!Originally posted by jiesen View PostComment
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The market is having a good day today, and so is LEN! Up $3 to 115 today, so just one more good day, and I can sell this at 118! Will it be this week? Or will LEN keep teasing us like this?Originally posted by jiesen View PostComment
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Is today that good day?Originally posted by jiesen View Post
Well, LEN is now trading at just about $117 and if it can add just another $1 I can finally sell this one! C'mon, LEN you're almost there!!!Comment
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I think today is the day I get to sell my LEN stock.... at over 116.5 it's only about 0.5 away from my revised target of $117. (I really want to sell LEN now so I can buy more MHO without putting too much of my stock into homebuilders, as I already have 3 of these)
...and it just went up another $0.2 while I was writing this, so any minute now, my limit order to sell should hit!Comment
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LEN beat its earnings estimate for Q2 today, so I sold AH for $118 and got my 15% on the rest that I didn't sell at 117 yesterday.
Thanks for this awesome pick, $$MM and I'm sure you'll be getting more for this one tomorrow! Congrats on yet another winner, and may there be many more this year!!!Comment
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https://finance.yahoo.com/news/lennar-reports-second-quarter-2023-203000856.html
Yahoo's report of LEN earnings:
Second Quarter 2023 Highlights
- Net earnings per diluted share of $3.01
- Net earnings of $872 million
- Deliveries of 17,074 homes
- New orders of 17,885 homes with a dollar value of $8.2 billion
- Backlog of 20,214 homes with a dollar value of $9.5 billion
- Total revenues of $8.0 billion
- Homebuilding operating earnings of $1.2 billion
- Financial Services operating earnings of $112 million
- Multifamily operating loss of $8 million
- Lennar Other operating loss of $18 million
- Homebuilding cash and cash equivalents of $4.0 billion
- Years supply of owned homesites of 1.7 years and controlled homesites of 70%
- No outstanding borrowings under the Company's $2.6 billion revolving credit facility
- Homebuilding debt to total capital of 13.3%
- Repurchased $158 million aggregate principal of Senior Notes due in fiscal year 2024
- Repurchased 2 million shares of Lennar common stock for $208 million
MIAMI, June 14, 2023 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its second quarter ended May 31, 2023. Second quarter net earnings attributable to Lennar in 2023 were $872 million, or $3.01 per diluted share, compared to second quarter net earnings attributable to Lennar in 2022 of $1.3 billion, or $4.49 per diluted share. Excluding mark-to-market gains (losses) on technology investments in both years, second quarter net earnings attributable to Lennar in 2023 were $852 million or $2.94 per diluted share, compared to second quarter net earnings attributable to Lennar in 2022 of $1.4 billion or $4.69 per diluted share.
Stuart Miller, Executive Chairman of Lennar, said, "During the quarter, we continued to see the housing market normalize and recover from the Fed's 2022 aggressive interest rate hikes in response to elevated inflation. As consumers have come to accept a "new normal" range for interest rates, demand has accelerated, leaving the market to reconcile the chronic supply shortage derived from over a decade of production deficits. Simply put, America needs more housing, particularly affordable workforce housing, and demand is strong when price and interest rates are affordable."
Mr. Miller continued, "Against this backdrop, our second quarter earnings were $872 million, or $3.01 per diluted share, compared to $1.3 billion, or $4.49 per diluted share last year. This quarter's results reflect the execution of our previously articulated operating strategies of pricing to market and meeting demand with affordable pricing and incentives. Accordingly, while our average sales price per home delivered was $449,000 in the second quarter, compared to almost $500,000 at the peak last year, our home deliveries were 17,074, up 3%, and our new orders were 17,885, up 1%, year over year. Our homebuilding gross margin started to bounce back in the second quarter to 22.5%, reflecting cost reductions, and with carefully managed homebuilding S,G&A expenses of 6.7%, led to a 15.8% net margin."
"While our operating performance remains strong, we continue to strengthen and fortify our balance sheet and our future. We ended the quarter with homebuilding debt to capital of 13.3%, the lowest in our history, no borrowings on our $2.6 billion revolver and cash of $4.0 billion. With liquidity of $6.6 billion and cash on hand exceeding our debt, our balance sheet has never been in a stronger position."
Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "Much of our balance sheet and inventory management progress was driven by the execution of our land strategy, while simultaneously driving sales, deliveries and managing production. Our ending community count for the quarter was 1,263, which was up 3% over last year. We continued to make significant progress on our land light strategy. This was evidenced by our years supply of owned homesites improving to 1.7 years from 2.4 years and our controlled homesite percentage increasing to 70% from 68% year over year."
Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "During the quarter, consistent with our strategy of cost control and cycle time reduction, our homebuilding machine continued to be intensely focused on carefully managing production. Our cycle time during the quarter was down slightly sequentially, and we believe it will decline further in the back half of the year as the improving supply chain and labor market will positively impact our production times. Our quarterly starts and sales pace were 5.3 homes and 4.8 homes per community, respectively, and we ended the second quarter with approximately 1,300 completed, unsold homes, about one home per community, demonstrating our focus on inventory management."
Mr. Miller concluded, "Interest rates appear to have settled into a fairly steady, yet higher range, with the consumer digesting the current housing market, as evidenced by the strong spring selling season. As we always do, we are going to remain vigilant as the housing market continues to rebalance the interplay between short supply with strong demand. As we look ahead to our third quarter, we expect to deliver between 17,750 to 18,250 homes with a gross margin between 23.5% to 24.0%. For the full year 2023, we expect to deliver between 68,000 to 70,000 homes (up from our prior guidance of between 62,000 to 66,000 homes). We continue to fortify our balance sheet with significant liquidity and operate from a position of strength, repurchasing stock and reducing debt, thus enabling us to continue to execute on our core strategies and outperform in periods of growth as well as uncertainty."
RESULTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 2023 COMPARED TO
THREE MONTHS ENDED MAY 31, 2022
Homebuilding
Revenues from home sales decreased 4% in the second quarter of 2023 to $7.6 billion from $8.0 billion in the second quarter of 2022. Revenues were lower primarily due to a 7% decrease in average sales price of home deliveries, partially offset by a 3% increase in the number of home deliveries. New home deliveries increased to 17,074 homes in the second quarter of 2023 from 16,549 homes second quarter of 2022. The average sales price of homes delivered was $449,000 in the second quarter of 2023, compared to $483,000 in the second quarter of 2022. The decrease in average sales price of homes delivered in the second quarter of 2023 compared to the same period last year was primarily due to pricing to market and product mix.
Gross margins on home sales were $1.7 billion, or 22.5%, in the second quarter of 2023, compared to $2.4 billion, or 29.5%, in the second quarter of 2022. During the second quarter of 2023, gross margin decreased because revenues per square foot decreased year over year as the Company priced homes to market and costs per square foot increased primarily due to higher materials and labor costs. In addition, land costs increased year over year.
Selling, general and administrative expenses were $511 million in the second quarter of 2023, compared to $487 million in the second quarter of 2022. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 6.7% in the second quarter of 2023, from 6.1% in the second quarter of 2022, primarily due to an increase in the use of brokers in current market conditions.
Financial Services
Operating earnings for the Financial Services segment were $112 million, net of noncontrolling interests, in the second quarter of 2023, compared to $104 million in the second quarter of 2022. The increase in operating earnings was primarily due to a higher profit per locked loan in the Company's mortgage business as a result of higher margins, partially offset by lower lock volume. There was also an increase in profitability in the Company's title business primarily due to benefits of the Company's technology efforts.
Other Ancillary Businesses
Operating loss for the Multifamily segment was $8 million in the second quarter of 2023, compared to operating earnings of $1 million in the second quarter of 2022. Operating loss for the Lennar Other segment was $18 million in the second quarter of 2023, compared to operating loss of $108 million in the second quarter of 2022.
RESULTS OF OPERATIONS
SIX MONTHS ENDED MAY 31, 2023 COMPARED TO
SIX MONTHS ENDED MAY 31, 2022
Homebuilding
Revenues from home sales were $13.7 billion in both the six months ended May 31, 2023 and 2022. Revenues were flat primarily because a 6% increase in the number of home deliveries was offset by a 5% decrease in average sales price of homes delivered. New home deliveries increased to 30,733 homes in the six months ended May 31, 2023 from 29,087 homes in the six months ended May 31, 2022. The average sales price of homes delivered was $449,000 in the six months ended May 31, 2023, compared to $472,000 in the six months ended May 31, 2022. The decrease in average sales price of homes delivered in the six months ended May 31, 2023 compared to the same period last year was primarily due to pricing to market and product mix.
Gross margins on home sales were $3.0 billion, or 21.9%, in the six months ended May 31, 2023, compared to $3.9 billion, or 28.4%, in the six months ended May 31, 2022. During the six months ended May 31, 2023, gross margin decreased because revenues per square foot decreased year over year as the Company priced homes to market and costs per square foot increased primarily due to higher materials and labor costs. In addition, land costs increased year over year.
Selling, general and administrative expenses were $960 million in the six months ended May 31, 2023, compared to $915 million in the six months ended May 31, 2022. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.0% in the six months ended May 31, 2023, from 6.7% in the six months ended May 31, 2022.
Financial Services
Operating earnings for the Financial Services segment were $191 million in the six months ended May 31, 2023, compared to $195 million in the six months ended May 31, 2022.
Other Ancillary Businesses
Operating loss for the Multifamily segment was $30 million in the six months ended May 31, 2023, compared to operating earnings of $6 million in the six months ended May 31, 2022. Operating loss for the Lennar Other segment was $58 million in the six months ended May 31, 2023, compared to operating loss of $512 million in the six months ended May 31, 2022.
Tax Rate
For the six months ended May 31, 2023 and 2022, the Company had a tax provision of $466 million and $600 million, respectively, which resulted in an overall effective income tax rate of 24.1% and 24.7%, respectively. In the six months ended May 31, 2023, the Company's overall effective income tax rate was lower than last year primarily due to the reinstatement of the new energy efficient homes credit as a result of the enactment of the Inflation Reduction Act during the third quarter of 2022.
Share Repurchases
During the second quarter of 2023, the Company repurchased 2 million shares of its common stock for $208 million at an average share price of $103.91. During the six months ended May 31, 2023, the Company repurchased 4 million shares of its common stock for $397 million at an average share price of $99.25.
Debt Repurchases
During the three months ended May 31, 2023, the Company repurchased $158 million aggregate principal amount of Senior Notes due in fiscal 2024.
Liquidity
At May 31, 2023, the Company had $4.0 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.6 billion revolving credit facility, thereby providing approximately $6.6 billion of available capacity.
Guidance
The following are the Company's expected results of its homebuilding and financial services activities for the third quarter and fiscal year 2023:
Third Quarter 2023 Fiscal Year 2023 New Orders 18,000 - 19,000 Deliveries 17,750 - 18,250 68,000 - 70,000 Average Sales Price Consistent with Q2 2023 Gross Margin % on Home Sales 23.5% - 24.0% S,G&A as a % of Home Sales 6.7% - 6.8% Financial Services Operating Earnings $100 million - $105 million Comment
- Net earnings per diluted share of $3.01
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Looks like LEN hit your target today, Mr. Market. Congrats on another successful pick.Comment
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If he didn't sell when it hit 120.2 yesterday, he can certainly do so today. It's trading in the pre-market above 120.4 now, and will likely open at or above his target in about an hour. Looks like a new pick is coming soon!
$$MM is HUUUUUUUUUUUGGGGGEEEE!!!!!Comment
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Yep, just like I thought, LEN opened above 120.5 and is trading above 121 now. We have a winner!Comment
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thar she goes! 121.88=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$Comment
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Congrats on another HUUUUUUUUGGGGGEEEE winner in your streak, $$MM!!! Here's to many many more!Comment
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Congratulations, L. P.!Comment
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