Lennar Q3 EPS Misses Consensus, Warns On Supply Chain Constraints

Lennar Corp LEN reported third-quarter FY21 sales growth of 18% year-on-year, to $6.94 billion, beating the analyst consensus of $6.86 billion.
Homebuilding revenues rose 19% Y/Y. Home deliveries for the quarter increased 10% Y/Y to 15,199, about 600 homes below the low end of its guidance.
The company received 16,277 homes in new orders, a 5% Y/Y rise.
Homebuilding costs and expenses increased 11.8% Y/Y to $5.2 billion. The gross margin on home sales was 27.3% versus 23.1% last year. EBIT of $1.9 billion rose 99% Y/Y.
Adjusted EPS of $3.27 missed the analyst consensus of $3.28.
Lennar held $2.6 billion in cash and equivalents as of August 31, 2021.
"During the third quarter, our company and the homebuilding industry as a whole continued to experience unprecedented supply chain challenges which we believe will continue into the foreseeable future," said executive chairman Stuart Miller.
Outlook: Lennar sees Q4 new orders of 15,200 – 15,400, with deliveries of about 18,000 homes.
Price Action: LEN shares traded lower by 2.34% at $96 in premarket on Tuesday.

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