Lennar (NYSE: LEN ) reported earnings on June 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q2), Lennar beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share contracted significantly.
Gross margins dropped, operating margins grew, net margins contracted.
Lennar logged revenue of $1.43 billion. The 11 analysts polled by S&P Capital IQ looked for a top line of $1.32 billion on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $930.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.61. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. GAAP EPS of $0.61 for Q2 were 70% lower than the prior-year quarter's $2.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.8%, much worse than the prior-year quarter. Operating margin was 11.4%, 150 basis points better than the prior-year quarter. Net margin was 9.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $5.79 billion. The average EPS estimate is $1.86.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 552 members out of 1,239 rating the stock outperform, and 687 members rating it underperform. Among 332 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give Lennar a green thumbs-up, and 166 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 $43.34.
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