LEN Earnings Prediction
The chart below shows how LEN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LEN sees a -0.81% change in stock price 10 days leading up to the earnings, and a -1.71% change 10 days following the report. On the earnings day itself, the stock moves by +0.31%. This data can give you a slight idea of what to expect for the next quarter's release.
LEN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.31B
12.67%
-33.33%
Gross Margin
15.20%
-1.87%
-22.13%
Operating Margin
13.72%
0.29%
-23.01%
Net Margin
9.84%
6.61%
-21.09%
EPS
2.57
24.76%
-46.68%
No Data Available
LEN Earnings Analysis
Lennar Corporation Corporation (LEN.N) Earnings Conference Call
Positive
- Lennar Corporation reported solid and consistent operating results in the first quarter, with 18,176 homes sold, 16,798 homes delivered, and a margin of 21.8%, higher than expected.
- The company expects deliveries to increase by approximately 10% this year, showing continuous growth and efficiency in their operations.
- Lennar's focus on volume, production efficiencies, cost reductions, and strategic land management has positioned them well to address market conditions and drive cash flow.
- Lennar's financial services operations reported operating earnings of $131 million in the first quarter, showcasing a strong performance in mortgage and title services.
- Mortgage earnings increased to $100 million, driven by higher lock volume, higher capture rates, and greater productivity.
- Title earnings improved to $33 million, attributed to higher volume and enhanced efficiency through technology adoption.
- Lennar's balance sheet remains strong, with $5 billion in cash, no borrowings on their credit facility, and total liquidity of $7.6 billion.
- The company continues to focus on reducing capital investments, with progress towards becoming more asset-light and efficient in their operations.
- Improvements in inventory turnover, low leverage (9.6% homebuilding debt to total capital ratio), and strong earnings generation reflect financial stability and flexibility for future growth and strategic capital allocation.
- Lennar provided high-level guidance for Q2 2024, projecting new orders to be in the range of 20,900 to 21,300 homes, deliveries of 19,000 to 19,500 homes, and an EPS range of approximately $3.15 to $3.25 per share.
- The company anticipates continued growth, efficient inventory turnover, stable gross margins of around 22.5%, and strong earnings from financial services operations.
- Strategic capital allocation plans include repurchasing shares, reducing debt, and maintaining a focus on generating cash flow and shareholder returns.
Negative
- Higher interest rates and inflation are impacting affordability, with families stretching finances to cover expenses and debt delinquencies rising due to increased personal and credit card debt.
- Despite strong market conditions, there are challenges in maintaining affordability for working-class families, limiting their access to attainable housing.
- The company has accumulated a sizable $5 billion in cash, which some stakeholders criticize as limiting the ability to improve shareholder returns.
- There is uncertainty about the completion of a strategic spin-off related to land holdings and the potential impact on the company's capital allocation and shareholder returns.
- While the company has made progress in reducing cycle time and land ownership, there are ongoing challenges in enhancing operational efficiencies and reducing costs further.
