Lennar Corp shares are trading lower after hours: here’s why

Lennar Corp (NYSE: LEN) reported its financial results for the third quarter on Monday that beat Wall Street estimates.

Supply chain constraints

Shares of the company, however, fell another 3.0% in extended trading after closing the regular session about 3.0% down already, as investors focused on home deliveries that came in weaker than expected due to supply chain constraints. Executive Chairman Stuart Miller said:

Q3 financial performance

Lennar said its net income in the third quarter printed at $1.41 billion that translates to $4.52 per share. In the comparable quarter of last year, its net income was capped at $670 million or $2.12 per share.

The 2^nd largest U.S. homebuilder generated $6.94 billion in revenue that represents an annualised growth of 18.2%. In comparison, analysts had forecast $3.28 of per-share earnings on $6.87 billion in revenue.

Other notable figures

Lennar Corp delivered 15,199 homes in the third quarter versus the year-ago figure of 13,842. It also benefitted from an 8.0% increase in average home price to $428,000 in Q3. Other notable figures included orders which jumped 4.6% in the recent quarter to 16,277 homes.

Gross margin on homes sales also climbed from 23.1% to 27.3%, as per the earnings press release. The $30 billion company now has a price to earnings ratio of 9.09.