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By Dhirendra Tripathi
Investing.com – Lennar Company inventory (NYSE:) fell 5% in Thursday’s premarket buying and selling after the corporate’s fourth-quarter earnings and gross sales fell in need of estimates.
Excessive labor prices and costly uncooked supplies weighed on the earnings that in any other case rose 35% to $1.2 billion, or $3.91 per share, decrease than the $4.15 analysts estimated.
Use of lumber the corporate had bought when costs had been excessive additionally weighed on the earnings. Revenue would have been increased if not for mark-to-market losses on account of investments in expertise.
Labor and provide chain points constrained the corporate’s home-building efforts within the quarter ended November 30, the corporate mentioned, at the same time as deliveries rose 11%, to 17,819 properties.
The corporate closed the month with a backlog of 23,771 properties value $11.4 billion, up 26% and 45%, respectively.
The corporate made progress on its technique of being “land-light.” The variety of years of owned homesites improved to three from 3.5 final yr. The land-light strategy helped enhance money flows, which the corporate used for share repurchases and debt reimbursement, the corporate mentioned.
Income rose 24%, to $8.4 billion on the again of an 11% enhance within the variety of dwelling deliveries and a 14% rise within the common gross sales worth.
As a proportion of income from dwelling gross sales, promoting, common and administrative bills improved to six% from 7.5% within the fourth quarter of final yr. The corporate attributed this to decrease commissions paid to brokers and its efforts to make use of extra expertise in its processes.
Within the ongoing quarter, the corporate expects new orders for 14,800 of 15,100 items and deliveries to be about 12,500.
For the total yr, it sees deliveries at about 67,000 items whereas it sees the common gross sales worth to be round $460,000 within the quarter in addition to within the yr.
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