Lennar Corp reports a strong Q2: ‘we’re focused on affordability’

Lennar Corporation (NYSE: LEN) is up 5.0% on Tuesday after the homebuilder reported solid results for its fiscal second quarter in the face of inflationary pressures.

Executive chairman’s remarks on CNBC

Lennar homes, on average, were priced 17% higher in the recent quarter but Executive Chairman Stuart Miller reiterated the company’s commitment to affordability. On CNBC’s “Squawk on the Street”, he said:

Miller is convinced the homebuilder has enough room to adjust prices all the while maintaining “healthy margin” amidst rising costs.  

Notable figures in Lennar Q2 results

• Net income printed at $1.32 billion versus the year-ago figure of $831.4 million
• Per-share earnings of $4.49 were significantly above $2.65 in Q2 of previous year
• On an adjusted basis, per-share earnings stood at $4.69 in the recent quarter
• Revenue jumped 30% YoY to $8.36 billion as per the earnings press release
• FactSet consensus was for $3.95 of EPS on $8.12 billion in total revenue
• New orders were up 4.0% in fiscal Q2 - slightly ahead of the FactSet consensus

Homebuilding revenue went up 32.4% in the second quarter, helping the segment net margins jump from 18.6% to 23.5%.

Lennar future outlook

For the current financial quarter, Lennar forecasts 16,000 to 18,000 new orders, in line with the experts’ forecast. Miller added: