Lennar posted its second-quarter earnings that surpassed analysts’ expectations, leading to the homebuilding company’s shares climbing by as much as 5% in the premarket Tuesday.
Net income rose to $4.49 a share, from the year-ago quarter’s $2.65 a share. Excluding mark-to-market losses on technology investments, the company’s earnings came in at $4.69, exceeding the consensus expectations of $3.95 a share (based on FactSet poll).
Lennar’s total revenue surged +30% from the year-ago quarter to $8.36 billion, topping FactSet consensus of $8.11 billion.
Revenue from the Homebuilding business segment rose +32.3% from the prior-year quarter to $7.98 billion. Home deliveries for the quarter increased +14% year-over-year to 16,549 units. The average sales price of homes delivered was $483,000, + 17% higher from the year-ago level.
New orders were up+ 4% from the year-ago quarter to 17,792 homes. The potential value of net orders climbed +20% year over year to $9.1 billion.
Gross margin on home sales widened to 23.4% from 18.6%, notwithstanding increases in materials costs and wages .
“The weight of a rapid doubling of interest rates over six months, together with accelerated price appreciation, began to drive buyers in many markets to pause and reconsider. We began to see these effects after quarter end,” Lennar executive chairman Stuart Miller mentioned.
Looking ahead, , Lennar expects deliveries of 68,000 homes for fiscal year 2022. The company, did not issue guidance for other metrics, citing its belief that the Fed’s actions “are still quite fluid and responsive to inflation data.”
For the fiscal third quarter, the company projects deliveries in the range of 17,000-18,500 homes, with a gross margin on home sales of 28.5-29.5%. It expects new orders to be in the range of 16,000 to 18,000 units,
LEN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 32 cases where LEN's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LEN's RSI Indicator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LEN advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on February 03, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on LEN as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LEN turned negative on February 07, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LEN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LEN entered a downward trend on January 23, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.753) is normal, around the industry mean (7.196). P/E Ratio (11.784) is within average values for comparable stocks, (103.177). Projected Growth (PEG Ratio) (1.325) is also within normal values, averaging (1.437). Dividend Yield (0.010) settles around the average of (0.044) among similar stocks. P/S Ratio (1.345) is also within normal values, averaging (88.859).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LEN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a builder of residential buildings and provides residential mortgage, title and closing services
Industry Homebuilding