- Third Quarter Forecast: Lennar expects to see new orders between 20,500 to 21,000, which falls short of the estimated 21,095 units.
- Deliveries for the third quarter are also expected to match the range of 20,500 to 21,000, slightly below the estimate of 21,004.
- Second Quarter Results:
- Earnings Per Share (EPS) was reported at $3.45, up from $3.01 last year.
- Revenue increased by 9.6% year-over-year to $8.77 billion, exceeding the estimate of $8.57 billion.
- New home deliveries grew by 9%.
- Gross Margin on Home Sales was 22.6%, close to last year’s 22.5% and matching the estimate.
- Backlog decreased by 12% from last year, totaling 17,873 units.
- Company Comments:
- The company expects to deliver between 20,500 and 21,000 homes in the third quarter with a gross margin of around 23.0%.
- Employment remains strong, and housing supply is chronically short due to a decade-long production deficit, while demand is driven by strong household formation.
- Interest rate movements and consumer sentiment challenged affordability, but sales incentives led to a 19% increase in new orders and a 15% increase in deliveries year-over-year.
- The average sales price per home delivered was $426,000 in the second quarter, down 5% from last year.
- Homebuilding gross margin in the second quarter was 22.6%, an increase of 10 basis points from last year.
- Selling, General & Administrative (S,G&A) expenses were 7.5%, resulting in a net margin of 15.1%.
- Analyst Ratings: 14 analysts recommend buying, 7 suggest holding, and 2 advise selling.
A look at Lennar Corp A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| 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, Lennar Corp A holds a promising long-term outlook. With strong scores of 4 in Value, Growth, Resilience, and Momentum, the company seems well-positioned for future success. Lennar’s high Value score suggests that the company is trading at an attractive price relative to its fundamentals, while its Growth score indicates potential for expansion and increasing revenues. The Resilience score highlights the company’s ability to weather economic challenges, and the Momentum score signifies positive trends in stock performance.
Lennar Corporation, primarily known for constructing and selling single-family homes, also engages in various related services such as mortgage financing and title insurance. With solid scores across key factors, Lennar Corp A appears to be a promising investment option for investors looking for a company with strong fundamentals and growth potential in the real estate sector.
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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