Group 1: Core Investment Thesis - The potential election of Vice President Kamala Harris and a Democratic-controlled Congress could significantly benefit certain stocks in Warren Buffett's Berkshire Hathaway portfolio, particularly Lennar and NVR [2][3][7]. Group 2: Company Profiles - Lennar is a leading homebuilder in the U.S. with a market capitalization exceeding $45 billion, operating in 22 states and providing mortgage loans, title insurance, and closing services [4]. - NVR, another prominent homebuilder, has a market cap of around $28 billion and operates in 16 states, also offering mortgage and settlement services [5]. Group 3: Investment Rationale - The Biden administration's housing initiatives, including the construction of 3 million new homes and tax incentives for homebuilders, are expected to drive demand for Lennar and NVR [7][8][9]. - Economists predict that Harris' policies could lead to lower inflation compared to previous administrations, resulting in lower interest rates, which would make homebuilding more affordable [10]. Group 4: Market Position and Valuation - Berkshire Hathaway's investments in Lennar and NVR are relatively small, with stakes valued at approximately $24 million and $100 million, respectively, which do not significantly impact the conglomerate's overall portfolio [6]. - Lennar is considered a more attractive investment compared to NVR due to its lower share price and more favorable valuation metrics, trading at 10.7 times forward earnings versus NVR's 17.6 [13].

Unfortunately for home buyers, mortgage rates are sharply higher in October, with the 30-year rate averaging 6.92% as of Oct. 23 -- marking a fourth-straight weekly rise. Though it's too late to tell, new home sales will likely take a hit after surging last month thanks to lower rates. More specifically, sales of newly built homes jumped 4.1% to a higher-than-expected annual rate of 738,000 in September -- the fastest pace since May 2023. With this backdrop in mind, we're checking in on two homebuilding sto ...

Now is the ideal time to buy this Buffett stock. Imagine having one of the greatest investors of all time send you a list of the stocks he likes the most. The good news is that you don't have to use your imagination. In a real sense, it happens every three months. Warren Buffett unquestionably qualifies as a legendary investor. Although Buffett doesn't personally email a list of his favorite stocks to you, he does the next best thing. Every quarter, the company he runs, Berkshire Hathaway, reveals its stock ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered 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 August 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 ...

On September 25, 2024, Micron's Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on October 23, 2024, to shareholders of record as of the close of business on October 7, 2024.Lennar, one of the nation's leading homebuilders, announced that its Board of Directors has declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock payable on October 24, 2024 to holders of record at the close of business on October 9, 2024.Today, McDonald's B ...

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This stock was already hot before the Fed announced its rate cut. Now it should become even hotter.The wait is over. Investors anticipated an interest rate cut by the Federal Reserve for months. Last week, the Fed ended the speculation with an exclamation point. It lowered the federal funds rate (the interest rates that banks charge each other) by 0.5% -- twice the level many economists predicted.That's not the end of the story. The Fed expects more rate cuts this year and into 2025, with the federal funds ...

Financial Data and Key Metrics Changes - The company reported a year-over-year increase in starts by 8% to almost 20,250 homes, new orders increased by 5% to nearly 20,600, and deliveries rose by 16% to just over 21,500 homes [20][21] - The gross margin was reported at 22.5%, lower than expected, while the net margin was higher than expected at 15.8%, driven by operating efficiencies [21][22] - Earnings per share, excluding one-time items, were $3.90, with guidance for Q4 EPS expected to be in the range of $4.10 to $4.25 [21][51] Business Line Data and Key Metrics Changes - The Financial Services segment had operating earnings of $144 million, consistent with the prior year, despite lower lock volume in the mortgage business [43] - The Multifamily segment reported operating earnings of $79 million, primarily driven by a gain on the sale of assets, with a net gain of $179 million recorded [44] Market Data and Key Metrics Changes - The company noted a chronic housing shortage exacerbated by underproduction and higher construction costs, with housing starts reported at 1.36 million [11][12] - The company expects to deliver between 80,500 and 81,000 homes in 2024, representing a more than 10% increase over 2023 [20][35] Company Strategy and Development Direction - The company is transitioning to an asset-light model, focusing on volume and operational efficiencies while reducing owned land supply from three years to an expected 1.1 years by year-end [16][30] - The planned spin-off of Millrose Properties Inc. as a Real Estate Investment Trust (REIT) aims to enhance capital efficiency and provide a permanent source of land acquisition and development capital [27][30] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market, citing strong demand driven by lower interest rates and controlled inflation, which are expected to enhance affordability [8][10] - The company anticipates a steady state growth rate of around 10% in the long term, supported by a focus on asset-light operations and addressing the housing supply constraints [64][65] Other Important Information - The company has paid down approximately $4.9 billion of debt and repurchased about 50 million shares for approximately $5.7 billion since 2020, resulting in a debt to total capital ratio of 7.6% [17][48] - The company ended the quarter with $4 billion in cash and no borrowings on its revolving credit facility, providing total liquidity of $6.2 billion [45][48] Q&A Session Summary Question: Insights on Millrose and its impact on margins - Management indicated that Millrose will operate with a permanent capital structure, which is expected to have a relatively small impact on margins compared to current land banking structures [54][56] Question: Expectations on gross margin for Q4 - Management noted that the stickiness of interest rates and consumer confidence issues contributed to a revised outlook for flat gross margins in Q4, despite a decrease in rates later in the quarter [58][60] Question: Long-term volume growth expectations - Management is targeting a steady state growth rate of around 10%, emphasizing the need for additional housing supply as interest rates decline [64][65] Question: Operating margins compared to peers - Management acknowledged that the focus has been on operational efficiencies and volume growth, with expectations for operating margins to improve as the asset-light model is fully implemented [66][68]

Key TakeawaysLennar Corporation beat expectations on the top and bottom lines with its fiscal third-quarter results.The homebuilder guided investors toward no quarter-over-quarter growth for its gross margin on home sales.The stock, which rose Thursday following the Fed's rate cut, gave back some of those gains today. Lennar (LEN) shares dropped Friday despite stronger-than-expected quarterly results as the homebuilder's guidance left investors uninspired. The company said it expects its fiscal fourth-quart ...

Core Viewpoint - Lennar Corporation (LEN) reported third-quarter fiscal 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, although earnings showed a slight decline year-over-year, leading to a drop in stock price due to investor concerns over lower earnings and gross margin, along with cautious fourth-quarter guidance [1][2]. Quarterly Numbers - Adjusted earnings per share (EPS) were $3.90, surpassing the Zacks Consensus Estimate of $3.62 by 7.7%, but down 0.3% from $3.91 a year ago [2]. - Revenues reached $9.42 billion, exceeding the Zacks Consensus Estimate of $9.29 billion by 1.4% and increasing 7.9% from $8.73 billion year-over-year [2]. Segment Details - Homebuilding segment revenues totaled $9.05 billion, an 8.7% increase from the prior-year quarter, with home sales contributing $9.02 billion, up 8.8% [3]. - Home deliveries improved 16% year-over-year to 21,516 units, exceeding projections, while the average sales price (ASP) of homes delivered was $422,000, down 5.8% from the previous year [3]. - New orders rose 5% year-over-year to 20,587 homes, but the potential value of net orders fell 0.9% to $8.56 billion [4]. - Backlog declined 20.5% year-over-year to 16,944 homes, with potential housing revenues from backlog decreasing 21.4% to $7.75 billion [4]. - Gross margin on home sales was 22.5%, down 190 basis points from the previous year, attributed to decreased revenues per square foot and increased land costs [4]. - Financial Services segment revenues increased to $273.3 million from $266.2 million year-over-year, with operating earnings rising to $144.4 million [4][5]. Financials - At the end of the fiscal third quarter, Lennar had cash and cash equivalents of $4.04 billion, down from $6.27 billion at the end of fiscal 2023, with no outstanding borrowings under its $2.2 billion revolving credit facility [6]. - Total homebuilding debt was $2.26 billion, down from $2.82 billion at the fiscal 2023-end, with homebuilding debt to capital at 7.6% [6]. - The company repurchased 3.4 million shares for $519 million during the fiscal third quarter [6]. Guidance - For fourth-quarter fiscal 2024, Lennar expects deliveries between 22,500-23,000 homes, a decrease from 23,795 homes delivered in the prior year, with an expected ASP of nearly $425,000 [7]. - Gross margin on home sales is anticipated to remain flat year-over-year, with SG&A expenses projected to be in the range of 6.7-6.8% [7]. - New orders are expected to be between 19,000-19,300 units, up from 17,366 homes reported a year ago [7]. - Financial Services operating earnings are expected to be around $140 million, down from $168 million a year ago [7].