The 10-second takeaway
For the quarter ended Feb. 28 (Q1), Lennar beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins increased, net margins increased.
Lennar reported revenue of $989.9 million. The nine analysts polled by S&P Capital IQ looked for sales of $936.2 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $724.9 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 $0.26. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.26 for Q1 were 225% higher than the prior-year quarter's $0.08 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 8.5%, 20 basis points worse than the prior-year quarter. Operating margin was 5.4%, 40 basis points better than the prior-year quarter. Net margin was 5.8%, 370 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.28 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $5.56 billion. The average EPS estimate is $1.66.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 542 members out of 1,232 rating the stock outperform, and 690 members rating it underperform. Among 359 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 180 give Lennar a green thumbs-up, and 179 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 $39.75.
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