- Lennar’s 1Q revenue was $7.31 billion, marking a 13% increase year over year, but fell short of the estimated $7.42 billion.
- Earnings per share (EPS) stood at $2.57, compared to $2.06 in the same period the previous year.
- New home deliveries saw a 13% increase.
- The gross margin on home sales was 21.8%, up from 21.2% the previous year, surpassing the estimated 21.2%.
- Lennar expects to deliver between 19,000 and 19,500 homes in the second quarter, with a gross margin of approximately 22.5%.
- Despite interest rate fluctuations, sales incentives led to a 28% increase in new orders and a 23% increase in deliveries year over year.
- The macroeconomic environment remained relatively consistent in the first quarter, with strong employment, a chronic shortage of housing supply, and strong demand driven by robust household formation.
- The average sales price per home delivered, net of incentives, was $413,000 in the first quarter, down 8% from the previous year.
- The homebuilding gross margin in the first quarter was 21.8%, an increase of 60 basis points from the previous year, due to careful management of incentives and a focus on reducing construction costs.
- Homebuilding Selling, General & Administrative (S,G&A) expenses were 8.2%, resulting in a 13.6% net margin.
- The company’s strong operating performance in this quarter allowed for constructive capital allocation and continued strengthening and fortification of the balance sheet.
- The current market consensus on Lennar’s stock is 15 buys, 7 holds, and 2 sells.
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
Based on the Smartkarma Smart Scores, the long-term outlook for Lennar Corp A is looking positive. The company has received a score of 3 for value, indicating that it is reasonably priced and potentially undervalued in the market. This makes it an attractive option for investors looking for good value.
In terms of dividends, Lennar Corp A has received a score of 2, suggesting that it may not be the most attractive option for investors seeking regular dividend payments. However, the company has received a score of 4 for both growth and resilience, indicating strong potential for future growth and a stable financial standing.
Furthermore, Lennar Corp A has received a perfect score of 5 for momentum, indicating that it is currently performing well in the market and has positive market sentiment. Overall, the company’s focus on constructing and selling homes, as well as providing financial services, positions it well for long-term success and growth in the real estate industry.
Company Summary: Lennar Corporation is a real estate company that specializes in constructing and selling single-family homes, as well as providing mortgage financing and other financial services. They also buy and sell residential land. With a strong focus on growth and resilience, and a perfect score for momentum, Lennar Corp A is well-positioned for long-term success in the market.
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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