Investment Rating - The report does not provide a specific investment rating for the company [2][3] Core Views - The company expects to deliver 20,500-21,000 units in FY2024Q3, representing a year-over-year growth of 10-13% [1] - The company's FY2024 full-year delivery target remains at 80,000 units, with stable profit margins [1] - The company has strong financial strength, is in a net cash position, and actively returns value to shareholders through buybacks and dividends [1] - The company's performance is sensitive to potential US interest rate cuts, which could enhance stock price elasticity [1] Financial Performance - In FY2024Q2, the company reported revenue of $8.766 billion, a 9.0% year-over-year increase, and net income attributable to shareholders of $954 million, a 9.5% year-over-year increase [3][5] - The company's home sales revenue accounted for 95.6% of total revenue in FY2024Q2, reaching $8.381 billion [3][5] - The company delivered 19,690 homes in FY2024Q2, with an average delivery price of $426,000, representing a 15% increase in volume and a 9% increase in value year-over-year [6] - The company sold 21,293 homes in FY2024Q2, with an average selling price of $432,000, representing a 19% increase in volume and a 13% increase in value year-over-year [6] Profitability and Margins - The company's gross margin for home sales in FY2024Q2 was 22.6%, with a net margin of 15.1% [7] - The company expects its gross margin to remain around 23% in FY2024Q3 [7] Shareholder Returns - The company has a strong cash position, with $3.6 billion in cash and $2.2 billion in interest-bearing debt as of FY2024Q2 [8] - In FY2024Q2, the company repurchased 3.8 million shares for $603 million and paid a dividend of $0.5 per share [8] - The company has authorized a $5 billion share repurchase program, with $1.109 billion already repurchased in Q1 and Q2 of FY2024 [8] Historical Financials - From FY2020 to FY2023, the company's revenue grew from $22.489 billion to $34.233 billion, with a compound annual growth rate (CAGR) of 11.1% [4] - The company's net income attributable to shareholders fluctuated during this period, peaking at $4.614 billion in FY2022 before declining to $3.939 billion in FY2023 [4] - The company's return on equity (ROE) was 15.5% in FY2023, down from a peak of 22.8% in FY2021 [4]

Lennar Corp. (LEN, Financial) is the second-largest homebuilder in the United States, trailing only D.R. Horton (DHI). Over the past five years, the two companies have outperformed the industry. D.R. Horton only slightly outperformed Lennar over this period, but the difference is pretty negligible. LEN Data by GuruFocusHomebuilding industry is poised to growSingle-family housing starts have been steadily increasing since the Great Recession in 2009.Source: Federal Reserve Bank of St. LouisThis increase is e ...

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 ...

Lennar NYSE: LEN shares fell 5% to a multi-month low after setting tepid guidance for Q2. However, the move is overblown in light of the guidance, full-year outlook, cash flow, and robust capital return. The market could move lower before it moves higher, but a rebound is expected soon and will likely take the market to a new high.Get Lennar alerts:Lennar Builds More Than Homes, It Builds ValueLennar TodayLENLennar$148.72 -7.79 (-4.98%) 52-Week Range$102.90▼$172.59Dividend Yield1.34%P/E Ratio10.11Price Targ ...

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 ...