Lennar Corporation (NYSE:LEN) Q3 2020 Earnings Conference Call - Final Transcript
Sep 15, 2020 • 11:00 am ET
-- third quarter SG&A we have ever achieved.
Turning to financial services, they also executed at high levels, as Stuart mentioned, reporting $135 million of operating earnings. Mortgage operating earnings increased to $113 million, compared to $57 million in the prior year. Mortgage earnings benefited primarily from an increase in volume through a higher capture rate of increased deliveries, 82% versus 77% last year, and a lower percentage of cash buyers combined with an increase in secondary margins.
Title operating earnings were $21 million compared with $18 million in the prior year and title earnings increased primarily due to an increase in close quarters. And LMF Commercial had operating earnings of $1 million compared to $4 million in the prior year, primarily due to lower securitization volume.
And so with that quick summary, let me provide you with a little more detailed guidance for Q4, than what we included in our earnings release. Starting with Homebuilding. We expect new orders between 13,800 and 14,300, and should end the year with approximately 1,165 active communities. We expect to deliver between 15,500 and 16,000 homes. Our average sales price should be around 390,000.
We expect our gross margins to be in the range of 23.25% to 23.5%, and our SG&A should be in the range of 7.7% to 7.8%. And for the combined category of Homebuilding joint ventures, land sales and others, we expect a loss of between $15 million and $20 million. We believe our financial services earnings will be between $100 million and $105 million. And for both our Multifamily and Lennar Other segments, we expect a slight loss.
Corporate G&A, we expect that to be around $95 million for the quarter. We expect our tax rate to be approximately 23.5%. The weighted average share count should be approximately 309 million. And when you combine all of this, the guidance should produce an EPS range of $2.22 to $2.38. We hope that you find this guidance helpful.
And with that let's turn it to the operator for questions.