3 Big Earnings Reports Affecting Stocks Now

1) Lennar Corp. (NYSE:LEN): the company builds affordable, move-up and retirement homes primarily under the Lennar brand name throughout the United States. Today LEN reported its most recent earnings, with net income for the residential construction company falling to $24.8 million (7 cents/share) vs. $46.6 million (21 cents/share) a year earlier. A decline of 46.7% from the year earlier quarter. Revenues at Lennar also fell 6.1% to $764.5 million YoY. The company beat the mean analyst estimate of 4 cents/share. Estimates ranged from a loss of 10 cents per share to a profit of 15 cents per share. It also topped the average revenue estimate of $643.1 million.

Stuart Miller, CEO of Lennar Corporation, commented on today’s announcement, “We are pleased to report EPS of $0.07 for our second fiscal quarter of 2011. Despite operating in a challenging housing market that saw very little evidence of a spring selling season, we were still able to achieve strong results, making this our fifth consecutive quarter of profitability. Our new orders during the quarter were flat with last year notwithstanding the elevated level of sales in March and April of the prior year due to the Federal homebuyer tax credit. For the month of May, new orders were up over 30%, while new orders declined approximately 11% in the prior two months.” LEN shares ended the day up 2.27%.

Competitors to Watch: PulteGroup, Inc. (NYSE:PHM), KB Home (NYSE:KBH), D.R. Horton, Inc. (NYSE:DHI), Standard Pacific Corp. (NYSE:SPF), Meritage Homes Corporation (NYSE:MTH), Toll Brothers, Inc. (NYSE:TOL), M.D.C. Holdings, Inc. (NYSE:MDC), The Ryland Group, Inc. (NYSE:RYL).

2) Discover Financial Services (NYSE:DFS): Discover Financial Services is a credit card issuer in the United States and an electronic payment services company. The business reported its second quarter earnings today. Net income for the credit services company rose to $600 million ($1.09/share) vs. $258.1 million (33 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter. DFS beat the mean analyst estimate of 70 cents/share. Estimates ranged from 53 cents per share to 89 cents per share.

Discover CEO David Nelms commented, “Our all-time record results this quarter reflect the effectiveness of the Discover business model. Sustained improvements in credit performance have driven substantial releases of credit loss reserves, a portion of which has been reinvested for growth. The benefits of these investments can be seen in both our Direct Banking and Payment Services results this quarter. Our capital levels have also benefited from this outstanding performance, leading us to our recent announcement of a $1 billion share repurchase program.” DFS shares finished the day up 1.27%.

Competitors to Watch: American Express Company (NYSE:AXP), Capital One Financial Corp. (NYSE:COF), Visa Inc. (NYSE:V), SLM Corporation (NYSE:SLM), MasterCard Incorporated (NYSE:MA), Citigroup Inc. (NYSE:C), JP Morgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC).

3) Rite Aid Corporation (NYSE:RAD): the company reported its first quarter earnings today, with losses narrowing. Loss narrowed to $63.1 million (loss of 7 cents/diluted share) from $73.7 million (loss of 9 cents/share) in the same quarter a year earlier. Revenues for RAD remained constant at $6.39 billion. The company beat the mean analyst estimate of a loss of 12 cents/share. Estimates ranged from a loss of 6 cents per share to a loss of 16 cents per share. Analysts were expecting revenue of $6.36 billion. John Standley, Rite Aid president and CEO, noted, “We are pleased with the continued improvement in our results. We increased Adjusted EBITDA as we again grew same store sales and further reduced operating costs. Our sales initiatives continued to gain traction with the number of members enrolled in our wellness+ customer loyalty program reaching nearly 40 million. Prescriptions filled in comparable stores increased as customers took advantage of our new pharmacy programs.” RAD ended the day up over 6.3%.

Competitors to Watch: Walgreen Company (NYSE:WAG), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), CVS Caremark Corporation (NYSE:CVS).

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