Lennar Corp. (NYSE:LEN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.75%.
Lennar Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 35% to $0.54 in the quarter versus EPS of $0.40 in the year-earlier quarter.
Revenue: Rose 45.68% to $1.6 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Lennar Corp. reported adjusted EPS income of $0.54 per share. By that measure, the company beat the mean analyst estimate of $0.45. It beat the average revenue estimate of $1.56 billion.
Quoting Management: Stuart Miller, Chief Executive Officer of Lennar Corporation, said, “We are very pleased with our quarterly results, reporting earnings per share of $0.54. During the third quarter, our gross margin percentage on home sales improved to 24.9%, while our S,G&A expenses as a percentage of home sales revenue decreased to 10.2%, driving strong operating leverage as evidenced by an operating margin percentage of 14.7%. Despite a moderating sales pace, the number of new home orders in the quarter increased 14%, with a 16% increase in average sales price, resulting in a 32% increase in the dollar value of new home orders from the prior year period. We ended the quarter with a solid backlog, with a 32% increase in the number of homes and a 53% increase in backlog dollar value. Meanwhile, our financial services business generated $23.5 million of earnings during the quarter, despite a significant slowdown of refinance business.”
Key Stats (on next page)…