With shares of Lennar Corp. (NYSE:LEN) trading at around $41.02, is LEN an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
Lennar beat expectations and raised guidance. Based on these results, it looks like Lennar might be one of the few bright spots in a weak market today. At least it has more potential to close green than most other stocks. Lennar is up 1.54 percent so far in the pre-market.
Q4 expectations were for $0.44 EPS on $1.26 billion in revenue. EPS came in at $0.56, and revenue came in at $1.35 billion. Lennar delivered 4,443 homes, which is a 32 percent increase, and the average selling price of homes delivered rose to $261,000, which was a 7 percent increase. Lennar’s operating margin on home sales is now a solid 12.2 percent, which is mostly in thanks to an increase in selling prices and fewer buyer incentives. Most importantly, Lennar expects strong profitability in 2013.
We’ll take a deeper look into this story in the Trends section. For now, let’s take a look at some important numbers.