Lennar Beats on EPS but GAAP Results Lag
Lennar (NYS: LEN) reported earnings March 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q1), Lennar met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins increased, net margins contracted.
Lennar booked revenue of $724.9 million. The 10 analysts polled by S&P Capital IQ hoped for a top line of $720.9 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $558.0 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 $0.08. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.08 for Q1 were 43% lower than the prior-year quarter's $0.14 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 4.6%, 150 basis points better than the prior-year quarter. Operating margin was 0.9%, 200 basis points better than the prior-year quarter. Net margin was 2.1%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $869.4 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $3.55 billion. The average EPS estimate is $0.76.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 492 members out of 1,196 rating the stock outperform, and 704 members rating it underperform. Among 371 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 give Lennar a green thumbs-up, and 230 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 $24.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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