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Lennar Corporation Q2 net earnings attributable $517.4 million

Christian Fernsby ▼ | June 16, 2020
Lennar Corporation reported results for its second quarter ended May 31, 2020.
Lennar Corporation
Lennar Corporation   Revenues from home sales decreased 5% in the second quarter
Second quarter net earnings attributable to Lennar in 2020 were $517.4 million, or $1.65 per diluted share, compared to second quarter net earnings attributable to Lennar in 2019 of $421.5 million, or $1.30 per diluted share.

Topics: Lennar Corporation

Revenues from home sales decreased 5% in the second quarter of 2020 to $4.9 billion from $5.2 billion in the second quarter of 2019.

Revenues were lower primarily due to a 4% decrease in the average sales price of homes delivered.

New home deliveries, excluding unconsolidated entities, of 12,653 homes in the second quarter of 2020 were flat compared to 12,706 homes in the second quarter of 2019, as a result of the coronavirus pandemic and the economic shutdown.

The average sales price of homes delivered was $389,000 in the second quarter of 2020, compared to $407,000 in the second quarter of 2019.

Operating earnings for the Financial Services segment were $150.6 million in the second quarter of 2020 (which included $147.3 million of operating earnings and an add back of $3.3 million of net loss attributable to noncontrolling interests) compared to $62.5 million in the second quarter of 2019 (which included $56.2 million of operating earnings and an add back of $6.3 million of net loss attributable to noncontrolling interests).

Operating earnings increased due to an improvement in the mortgage business as a result of an increase in volume and margin, as well as reductions in loan origination costs and a $5.0 million gain on the sale of a servicing portfolio.

Additionally, the Financial Services segment recorded a $61.4 million gain on the deconsolidation of a previously consolidated entity.


 

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