Earnings Preview: Lennar Corporation - Analyst Blog


Lennar Corporation ( LEN ), one of the leading homebuilding companies in the U.S., is set to unveil its third quarter fiscal 2012 results on September 24, 2012, before the market opens. The Zacks Consensus Estimate for third quarter is currently earnings of 27 cents on revenues of $1.03 billion.

Second Quarter 2012 Recap

Lennar Corporation's adjusted earnings of 21 cents per share in the second quarter of 2012 beat the year-ago quarter earnings by 14 cents on the back of solid new order growth. Earnings also beat the Zacks Consensus Estimate by 5 cents.

Total revenue in the quarter grew 22% year over year to $930.2 million on the back of pricing and volume gains. Revenue, however, lagged the Zacks Consensus Estimate of $946 million.

Agreement of Estimate Revisions    

Of the 15 estimates for Lennar's third quarter 2012 earnings, only 1 moved in the upward direction over the last 7 and 30 days.

For the full year 2012, only 1 out of the 14 estimates moved up over the last 7 and 30 days.

The upward movements of the estimates were prompted by higher closings and orders in the months of June, July and August 2012.

Magnitude of Estimate Revisions

The Zacks Consensus Estimate for the third quarter of fiscal 2012 remained static at 27 cents over the last 7 days. However, over the last 30 days, the estimate for the third quarter declined by a penny from 28 cents.

The Zacks Consensus Estimate for fiscal 2012 rose by a penny to $2.82 per share in the last 7 days.  However, the estimate has declined by 2 cents from $2.84 in the last 30 days.

Surprise History

Lennar Corporation surpassed the Zacks Consensus Estimate in the last two quarters. However, the company's results lagged the Zacks Consensus Estimate by a penny in the fourth quarter of fiscal 2011. The company's results were in line with the Zacks Consensus Estimate in the third quarter of fiscal 2011. The average earnings surprise was 27.8% in the trailing four quarters.

Our Recommendation

Lennar Corporation's stock carries a Zacks #1 Rank (a short-term 'Strong Buy' rating).

We believe that the company is performing better than its peers by increasing sales prices, reducing incentives, improving volumes and investing in well positioned high margin communities.

LENNAR CORP -A (LEN): Free Stock Analysis Report
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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: LEN



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