Lennar Earnings: Here’s Why Investors are Happy Now

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 5.74%.

Lennar Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 70.39% to $0.61 in the quarter versus EPS of $2.06 in the year-earlier quarter.

Revenue: Rose 53.31% to $1.43 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lennar Corp. reported adjusted EPS income of $0.61 per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $1.33 billion.

Quoting Management: Stuart Miller, Chief Executive Officer of Lennar Corporation, said, “Against the backdrop of recent investor concerns over mortgage rate increases, we believe that our second quarter results together with real time feedback from our field associates continue to point towards a solid housing recovery. Our second quarter results reflect significant improvement in all of our key homebuilding and financial services metrics. Demand in all of our markets continues to outpace supply which is constrained by limited land availability and fewer competing homebuilders. At the same time, affordability remains high and despite recent interest rate increases, we have seen very little impact on sales or pricing.”

Key Stats (on next page)…

Revenue increased 44.05% from $989.95 million in the previous quarter. EPS increased 134.62% from $0.26 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.52 to a profit $0.51. For the current year, the average estimate is a profit of $1.67, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)