Lennar Corporation (NYSE:LEN) reported better-than-expected earnings for its fourth quarter on Wednesday.
Lennar, which prides itself as one of the nation's largest homebuilders, today reported fourth-quarter net earnings attributable to Lennar in 2020 were $882.8 million, or $2.82 per diluted share, compared to $674.3 million, or $2.13 per diluted share in the fourth quarter of 2019.
Net earnings attributable to Lennar for the year ended November 30, 2020 were $2.5 billion, or $7.85 per diluted share, compared to $1.8 billion, or $5.74 per diluted share for the year ended November 30, 2019.
Revenues from home sales decreased 2% in the fourth quarter of 2020 to $6.3 billion from $6.4 billion in the fourth quarter of 2019. Revenues were lower primarily due to a 2% decrease in the number of home deliveries, excluding unconsolidated entities.
New home deliveries, excluding unconsolidated entities, decreased to 16,038 homes in the fourth quarter of 2020 from 16,391 homes in the fourth quarter of 2019. The decrease in deliveries in the fourth quarter of 2020 was due to production lost to COVID-19 in the second quarter.
Executive Chairman Stuart Miller said, "The confluence of Millennials starting families and creating households of their own, along with the pro-housing effects of the COVID-19 pandemic, has materially strengthened demand.
"This surge in demand for housing, combined with the market's inability to produce sufficient homes to meet this demand, has exacerbated the already well-documented undersupply of new and existing homes for sale. Lennar is well positioned with its production-oriented, Everything's Included ® business model and strong land position to capitalize on this industry supply shortage."
LEN shares soared $7.13, or 9.6%, to $81.42.
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