Lennar
The 10-second takeaway
For the quarter ended May 31 (Q2), Lennar beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Revenue details
Lennar chalked up revenue of $930.2 million. The 12 analysts polled by S&P Capital IQ expected to see net sales of $906.8 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $764.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.21. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS of $2.06 for Q2 were much higher than the prior-year quarter's $0.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 91.3%, 8,250 basis points better than the prior-year quarter. Operating margin was 88.1%, 8,200 basis points better than the prior-year quarter. Net margin was 48.7%, 4,690 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.06 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $3.89 billion. The average EPS estimate is $0.80.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 497 members out of 1,203 rating the stock outperform, and 706 members rating it underperform. Among 353 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give Lennar a green thumbs-up, and 226 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lennar is hold, with an average price target of $28.51.
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