- Revenue: $9.42 billion, up 7.9% year-over-year (above the estimate of $9.21 billion).
- Earnings per Share (EPS): $4.26 vs. $3.87 year-over-year.
- Net New Orders: 20,587, up 4.7% year-over-year (slightly below the estimate of 20,827).
- New Home Deliveries: Up 9% year-over-year.
- Gross Margin on Home Sales: 22.5% vs. 24.4% year-over-year (slightly below the estimate of 23%).
- Backlog: 16,944, down 21% year-over-year (below the estimate of 17,822).
- Fourth Quarter Forecast:
- Sees new orders between 19,000 and 19,300 (estimate was 19,100).
- Expects to deliver between 22,500 and 23,000 homes with a gross margin flat with the third quarter.
- Comments:
- Affordability challenges were met with increased sales incentives.
- Quarter saw a 16% increase in deliveries and a 5% increase in new orders year-over-year.
- Strong employment and chronic housing supply shortages drove solid demand.
- Average sales price per home delivered in the third quarter was $422,000, slightly down from last year.
- Homebuilding gross margin in the third quarter was 22.5%, offset by better-than-expected SG&A expenses of 6.7%, resulting in a 15.8% net margin.
- Strong operating performance led to constructive capital allocation and strengthened balance sheet.
- Analyst Ratings: 10 buys, 11 holds, 1 sell.
A look at Lennar Corp A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided a comprehensive outlook for Lennar Corp A based on their unique Smart Scores system. Looking at the scores, Lennar Corp A seems to be in a favorable position for long-term growth and resilience. With a strong score of 4 in Growth and Resilience, the company is well-positioned to capitalize on future opportunities and navigate challenges efficiently.
Additionally, with a Momentum score of 5, indicating positive price trends and investor sentiment, Lennar Corp A seems to be attracting significant attention in the market. While the Value and Dividend scores are not as high, the overall outlook for the company appears promising, especially considering its core business of constructing and selling residential properties along with financial services offerings.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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