The 10-second takeaway
For the quarter ended Aug. 31 (Q3), Lennar beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins contracted, net margins grew.
Lennar booked revenue of $1.10 billion. The 12 analysts polled by S&P Capital IQ foresaw net sales of $1.05 billion on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $820.2 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 $0.40. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.40 for Q3 were 264% higher than the prior-year quarter's $0.11 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 8.3%, 320 basis points worse than the prior-year quarter. Operating margin was 5.3%, 340 basis points worse than the prior-year quarter. Net margin was 7.9%, 540 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.21 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $3.88 billion. The average EPS estimate is $1.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 519 members out of 1,217 rating the stock outperform, and 698 members rating it underperform. Among 352 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give Lennar a green thumbs-up, and 201 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lennar is outperform, with an average price target of $30.87.
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