- Lennar reported fourth-quarter revenue of $9.95 billion, which fell short of analysts’ estimates of $10.13 billion.
- Earnings per share (EPS) for the quarter was $4.06, down from $4.82 in the same period last year.
- The company received 16,895 net new orders, a 2.7% decline from the previous year, missing the estimate of 19,174 orders.
- The gross margin on home sales decreased to 22.1%, compared to 24.2% last year, slightly below the estimated 22.4% mark.
- Lennar’s backlog was 11,633 homes, showing a significant 22% drop year-over-year, missing the forecast of 13,221 homes.
- The fourth quarter sales pace trailed expectations, influenced by increasing interest rates.
- Despite strong demand and a continued supply shortage, higher interest rates impacted affordability, affecting results.
- Lennar focused on cash flow management, strategically deploying capital and reinforcing its balance sheet.
- The company’s homebuilding gross margin was 22.1% with selling, general and administrative (SG&A) expenses at 7.2%, leading to a net margin of 14.9%.
- Analyst recommendations include 9 buys, 12 holds, and 1 sell.
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Lennar Corp A on Smartkarma
Analyst coverage of Lennar Corp A on Smartkarma by Baptista Research highlights the recent acquisition of WCH Homes as a potential indicator of continued consolidation in the homebuilding sector. In their report “Lennar Corporation: The Acquisition of WCH Homes An Indicator Of Continued Consolidation In Its Domain? – Major Drivers,” Baptista Research delves into the financial and operational performance of Lennar Corporation in the third quarter. The analysis acknowledges Lennar’s adeptness in navigating a dynamic economic landscape characterized by fluctuating interest rates and persistent housing demand amidst a shortage of homes. A positive outlook is presented, emphasizing Lennar’s successful strategies, such as offering mortgage rate buydowns and incentives to enhance homebuyer affordability.
A look at Lennar Corp A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
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 evaluating Lennar Corp A have given the company promising scores across key factors. With a Value score of 4, Lennar Corp A is viewed favorably in terms of its current stock price relative to its intrinsic value. Additionally, its Resilience score of 4 suggests that the company is well-equipped to weather economic downturns and external market shocks, providing a sense of stability for investors.
While the Growth and Momentum scores stand at 3, indicating moderate growth potential and market momentum, the Dividend score of 3 reflects a steady dividend payout that may attract income-focused investors. Overall, Lennar Corp A seems to offer a balanced investment opportunity with strengths in value and resilience, positioning it well for long-term success in the construction and 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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