Lennar Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Lennar (NYS: LEN) reported earnings on June 27. 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 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.

anImage
anImage

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.

anImage
anImage

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.

The article Lennar Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement