Lennar beats by $0.10, beats on revs
Reports Q2 (May) earnings of $0.61 per share, $0.10 better than the Capital IQ Consensus Estimate of $0.51; revenues rose 27.5% year/year to $1.82 bln vs the $1.68 bln consensus.
Key metrics:
Gross margins on home sales were $695.7 million, or 25.3%, in the six months ended May 31, 2014, compared to $492.3 million, or 23.3%, in the six months ended May 31, 2013. Gross margin percentage on home sales improved compared to the six months ended May 31, 2013, primarily due to a decrease in sales incentives offered to homebuyers as a percentage of revenue from home sales, an increase in the average sales price of homes delivered, a greater percentage of deliveries from the Company's new higher margin communities
Key metrics:
- New orders of 6,183 homes - up 8%; new orders dollar value of $2.0 billion - up 21%
- Backlog of 6,858 homes - up 11%; backlog dollar value of $2.4 billion - up 26%
- Gross margin on home sales of 25.5% - improved 140 basis points S,G&A expenses as a % of revenues from home sales of 10.8% - improved 10 basis points
Gross margins on home sales were $695.7 million, or 25.3%, in the six months ended May 31, 2014, compared to $492.3 million, or 23.3%, in the six months ended May 31, 2013. Gross margin percentage on home sales improved compared to the six months ended May 31, 2013, primarily due to a decrease in sales incentives offered to homebuyers as a percentage of revenue from home sales, an increase in the average sales price of homes delivered, a greater percentage of deliveries from the Company's new higher margin communities