Lennar reports Q1 EPS $2.06, consensus $1.55

Reports Q1 revenue $6.5B, consensus $5.93B. Q1 backlog decreased 29% to 19,403 homes; backlog dollar value decreased 33% to $9.0B. Stuart Miller, Executive Chairman of Lennar, said, "During the quarter, we saw a generally strong economy at the intersection of high inflation and strong employment numbers, while the housing market continued down a winding road of trying to find its footing. In December, interest rates and sticker shock continued to constrain sales activity, while in January and early February, lower interest rates energized sales. In late February, a spike in interest rates impacted website and community traffic and had a slight impact on sales. The Federal Reserve stayed its course of raising interest rates to cool inflation, though has yet to reach desired results. Homebuyers are considering the possibility that today’s interest rate environment may be the new normal. Accordingly, the housing market continues shifting as growing household and family formation continued to drive demand against a chronic supply shortage.Against this backdrop, we are pleased to announce our first quarter results which reflect execution of our previously articulated operating strategies. In the Q1, our earnings were $597M, or $2.06 per diluted share, compared to $504 million, or $1.69 per diluted share for the first quarter last year. Excluding mark-to-market losses on our technology investments, first quarter earnings were $615 million, or $2.12 per diluted share, compared to $800M, or $2.70 per diluted share for the first quarter last year, a 23% and 21% decrease year over year, respectively."