Lennar Corp Earnings: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component Lennar Corporation (NYSE:LEN) reported net income above Wall Street’s expectations for the third quarter. Lennar builds affordable move-up and retirement homes primarily under the Lennar brand name throughout the United States.

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Lennar Corporation Earnings Cheat Sheet

Results: Net income for Lennar Corporation rose to $87.1 million (40 cents per share) vs. $20.7 million (11 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year-earlier quarter.

Revenue: Rose 34.1% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lennar Corporation beat the mean analyst estimate of 28 cents per share. It beat the average revenue estimate of $885.7 million.

Quoting Management: “In homebuilding, we continue to see strong sales trends translating into increased deliveries, stronger gross margins and improved operating leverage,” said Chief Executive Stuart Miller. “While materials and labor costs are moving higher, sales-price increases and incentive reductions should continue to offset the impact of increasing costs.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 21.7% to $930.2 million in the second quarter. The figure rose 29.9% in the first quarter from the year earlier and climbed 10.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 5 cents in the second quarter and by 3 cents in the first quarter.

Net income has increased more than sevenfold year-over-year on average across the last five quarters. The biggest gain came in the second, when income climbed 3184% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 30 cents a share to 38 cents over the last thirty days. The average estimate for the fiscal year has risen to $2.81 per share from 82 cents in the past month.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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