Lennar Corporation, a leading homebuilder, has reported its third-quarter 2024 results, highlighting key comparisons with the prior year quarter. The company's net earnings per diluted share increased by 10% to $4.26, excluding mark-to-market gains on technology investments and one-time items in its multifamily segment. Net earnings also saw a 5% increase to $1.2 billion.
New orders for Lennar increased by 5% to 20,587 homes, and the backlog stood at 16,944 homes with a dollar value of $7.7 billion. Deliveries surged by 16% to 21,516 homes, contributing to total revenues of $9.4 billion. The homebuilding operating earnings amounted to $1.5 billion, with a gross margin on home sales of 22.5%.
The financial services segment of the company reported operating earnings of $144 million, while the multifamily segment saw operating earnings of $79 million. Lennar's other segment reported operating earnings of $20 million.
Lennar's cash and cash equivalents for homebuilding amounted to $4.0 billion, and the company had no outstanding borrowings under its $2.2 billion revolving credit facility. The homebuilding debt to total capital ratio stood at 7.6%, demonstrating a strong financial position.
During the third quarter, Lennar repurchased 3.4 million shares of its common stock for $519 million, reflecting a commitment to returning value to shareholders.
Looking ahead, Lennar expects to deliver between 22,500 and 23,000 homes in the fourth quarter of 2024, with a gross margin flat with the third quarter. The company also anticipates maintaining a strong balance sheet with significant liquidity, enabling continued execution of core strategies to drive strong cash flow and higher returns.
In terms of operational performance, Lennar reported a 9% increase in revenues from home sales to $9.0 billion, driven by a 16% increase in the number of home deliveries. However, the average sales price of homes delivered decreased by 6% to $422,000.
Gross margins on home sales were 22.5%, slightly lower than the prior year, primarily due to a decrease in revenues per square foot and an increase in land costs. Selling, general and administrative expenses decreased to 6.7% of revenues from home sales, from 7.0% in the prior year, driven by a decrease in broker commissions and benefits of the company's technology efforts.
Following these announcements, the company's shares moved 2.1%, and are now trading at a price of $192.45. For the full picture, make sure to review Lennar's 8-K report.
