Core Insights - Lennar Corp. is the second-largest homebuilder in the U.S., closely following D.R. Horton, with both companies outperforming the industry over the past five years [1][16]. - The homebuilding industry is expected to grow, with single-family housing starts projected to exceed 1 million by 2025, driven by a significant housing shortage estimated between 4 million and 7 million homes [3][5]. - Lennar's primary revenue source is homebuilding, accounting for over 95% of total revenue, while financial services contribute about 3% but have higher margins [6][7]. Industry Growth - The homebuilding sector has shown steady growth since the Great Recession, with increasing demand for single-family units due to housing shortages [3][5]. - The company is well-positioned to capitalize on this demand, particularly in high-margin regions like the East and Texas, which are expected to grow faster than the national average [13][20]. Financial Performance - Homebuilding revenue has been increasing over the last decade, with gross margins expected to remain just over 23% in 2024, despite fears of recession dissipating [8][9]. - The financial services segment has improved margins significantly due to automation in mortgage loan origination, reducing costs by about 35% [15]. Competitive Position - Lennar is gaining traction in high-margin areas, while D.R. Horton is experiencing revenue declines in its South Central division, which includes Texas [20][24]. - Key financial metrics slightly favor Lennar, including a lower debt-equity ratio, indicating less leverage and risk compared to D.R. Horton [35]. Market Reaction - Recent CPI data showed inflation cooling faster than expected, which positively impacted Lennar's stock price, rising nearly 7% following the report [36]. - The company’s stock is currently viewed as a good investment opportunity, with a price target raised to around $180, reflecting a premium to its expected book value per share [38][39].

As the stock market navigates post-election economic shifts, those are eyeing stocks that promise growth and demonstrate resilience against market fluctuations. Understanding the fundamentals behind these choices can significantly enhance portfolio strength and stability. Here, the focus is on the top contenders currently commanding attention. Each company represents a distinct sector — defense technology, retail home improvement and residential construction. However, they share a fundamental commitment to ...

Core Viewpoint - Lennar's recent earnings report for Q2 fiscal 2024 showed strong performance with earnings and revenues exceeding estimates, driven by strategic pricing and sales momentum despite market fluctuations [2][3]. Financial Performance - Quarterly earnings per share (EPS) reached $3.38, surpassing the Zacks Consensus Estimate of $3.20 by 5.6%, and increased 15% year over year [3]. - Revenues totaled $8.8 billion, exceeding the consensus mark of $8.6 billion by 2.2% and rising 9% from $8.1 billion in the previous year [3]. Segment Performance - Homebuilding revenues amounted to $8.38 billion, up 9.3% year over year, with home sales contributing $8.36 billion, a 9.4% increase [4]. - New orders rose 19% year over year to 21,293 homes, with the potential value of net orders increasing 12.5% to $9.2 billion [5]. - Financial Services segment revenues increased to $281.7 million from $223 million year over year, with operating earnings rising to $147 million from $112.6 million [5][8]. Operational Metrics - Home deliveries improved 15% year over year to 19,690 units, exceeding projections of 19,200 units [4]. - The average sales price (ASP) of homes delivered was $426,000, down 5% from the previous year due to market pricing strategies [4]. Financial Position - At the end of Q2, Lennar had cash and cash equivalents of $3.6 billion, down from $6.27 billion at the end of fiscal 2023, with no outstanding borrowings under its $2.2 billion revolving credit facility [8]. - Total homebuilding debt decreased to $2.24 billion from $2.82 billion at the end of fiscal 2023, with a debt to capital ratio of 7.7% [8]. Guidance - For Q3 fiscal 2024, Lennar expects deliveries between 20,500-21,000 homes, with an ASP of $420,000-$425,000, and a gross margin on home sales around 23% [9]. - New orders are anticipated to be within 20,500-21,000 units, up from 19,666 homes reported a year ago [9]. Market Sentiment - Despite the positive earnings report, investor sentiment may be affected by lower gross margin expectations and increased SG&A guidance for Q3 fiscal 2024 [2][10]. - Estimates for the stock have been trending downward, indicating a potential shift in market outlook [11].

Key TakeawaysShares of home builders sank after Citi downgraded Lennar and D.R. Horton and cut the price targets of five firms in the sector.Citi said soft housing data could persist for the rest of 2024.The analysts cut their ratings on both Lennar and D.H. Horton from Buy to Neutral. Shares of several home builders tumbled Tuesday after Citi downgraded Lennar (LEN) and D.R. Horton (DHI), citing concerns about a housing market it says may stay sluggish for the rest of the year. Citi cut its ratings on the ...

Group 1: Company Performance - Lennar Corp (LEN) and DR Horton Inc (DHI) stocks are down following Citigroup's downgrade to "neutral" from "buy," with price targets reduced to $164 from $174 for LEN and $156 from $181 for DHI due to risk/reward ratios [1][2] - Lennar's stock is down 2.4% to $142.38, marking its lowest level since December, and has decreased 17% from its record high of $172.54 on March 28, although it remains up 31.5% over the last nine months [1] - DR Horton has also dropped 1.2% to $135.52, reaching its lowest level since December, and is down 11.8% year-to-date, with an 18% decline from its April 1 high of $165.75 [2] Group 2: Market Trends - Lennar's shares are poised to close below their 200-day moving average for the first time since November [1] - DR Horton's stock breached its 200-day moving average today, following a previous breach of the 160-day trendline last month [2] - Options trading activity for both companies has increased significantly, with Lennar's put/call open interest ratio at 0.79, indicating bullish sentiment among short-term options traders [1] Group 3: Options Activity - For DR Horton, 1,444 calls and 1,843 puts have been traded today, which is triple the average intraday volume, with the January 17, 2025, 150-strike call being the most popular contract [2] - The June 95-strike put for DR Horton is also seeing new positions being opened [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______ To _______ Commission File Number: 1-11749 Lennar Corporation (Exact name of registrant as specified in its charter) Delaware 95-4337490 (State or other ...

Core Viewpoint - Lennar's shares experienced a 5% decline to a multi-month low due to conservative guidance for Q2, but this reaction is considered exaggerated given the company's overall strong performance and outlook for the year [1][2]. Financial Performance - Lennar reported net revenue of $8.77 billion, reflecting an 8.9% increase, surpassing consensus estimates by $0.22 billion [1][2]. - GAAP and adjusted earnings grew by 14% and 15%, respectively, driven by pricing, demand leverage, and improved efficiency [2]. - The company reduced its cycle time by 30% and increased inventory turnover to 1.6 times per quarter, enhancing operational efficiency [2]. Cash Flow and Shareholder Returns - Despite a negative cash flow in Q1, the company utilized cash to pay down debt, repurchase shares, and distribute dividends, maintaining a strong balance sheet [3]. - Total liabilities decreased by nearly $1 billion (7.2%), while equity increased by 1.1% [3]. - The dividend yield stands at 1.34%, with an annual dividend of $2.00 and a three-year annualized dividend growth of 33.89% [4][5]. Market Outlook - The company's backlog increased in Q1 and is expected to remain stable in Q2, with a slight anticipated decline in average price by 1.15% offset by increased deliveries [2]. - Analysts maintain a "Hold" rating on Lennar, with a consensus price target of $185, indicating potential for a 12% increase from current levels [5][6].

Resilient demand stemming from a post-pandemic home shortage has fueled the strong stock performance of many homebuilders in recent years with Lennar Corporation (LEN)  standing out among the pack.Although Lennar exceeded its fiscal second quarter top and bottom-line expectations after-market hours on Monday, its stock fell -5% in today’s trading session which may coincide with profit-taking amid weaker-than-expected EPS guidance. That said, let’s see if the post-earnings dip is a buying opportunity with Le ...

jetcityimage Introduction It's time to talk about home builders - one home builder in particular. The Lennar Corporation (NYSE:LEN) is America's second-largest home builder and one of the best-performing S&P 500 (SP500) stocks over the past five years. Going back to 2019, LEN shares have more than tripled, outperforming the S&P 500 by more than 100 points. Data by YCharts This surge was supported by massive housing shortages. Even elevated rates could not keep home builders from flying, which was simply ...

Lennar Corporation (NYSE:LEN) Q2 2024 Earnings Conference Call June 18, 2024 11:00 AM ET Company Participants David Collins - Vice President and Controller Stuart Miller - Executive Chairman and Co-Chief Executive Officer Jon Jaffe - Co-Chief Executive Officer and President Diane Bessette - Chief Financial Officer Bruce Gross - Chief Executive Officer of Lennar Financial Services Conference Call Participants Stephen Kim - Evercore ISI Carl Reichardt - BTIG Susan Maklari - Goldman Sachs Alan Ratner - Zelman ...