Lennar Plunges on Q3 Earnings Beat

Lennar Corporation (NYSE:LEN) reported upbeat earnings for its third quarter on Monday. Deliveries increased 2% to 13,842, while new orders rose 16% to 15,564 homes during the quarter.

Third-quarter net earnings attributable to Lennar in 2020 were $666.4 million, or $2.12 per diluted share, compared to $513.4 million, or $1.59 per diluted share in the prior-year quarter.

Revenues were $5.9 billion – consistent with prior year. Homebuilding operating margins of $832.0 million, compared to $657.1 million. Homebuilding cash and cash equivalents were $2.0 billion. The company incurred no borrowings under its $2.4 billion revolving credit facility, and paid down approximately $400 million of debt during the quarter

Executive Chairman Stuart Miller said, "We are pleased to announce our results for the third quarter where we achieved net earnings of $666.4 million, or $2.12 per diluted share, compared to $513.4 million, or $1.59 per diluted share in the prior year. Our third quarter results benefited from robust market conditions combined with the solid execution of our homebuilding and financial services businesses.

"Fundamentals in the housing market continued to remain strong supported by record low interest rates and a continued undersupply of new and existing inventory. The housing market continued its strong rebound from the significantly weaker sales environment earlier in the year as a result of COVID-19."

LEN shares dropped $1.59, or 2%, to $77.41.