Earnings Preview: Lennar (LEN) Q3 Earnings Expected to Decline

Core Viewpoint - The market anticipates a year-over-year decline in Lennar's earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Lennar is expected to report quarterly earnings of $2.12 per share, reflecting a year-over-year decrease of 45.6% [3]. - Revenue projections stand at $9.07 billion, which is a 3.7% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Lennar is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.64%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [9]. Historical Performance - In the last reported quarter, Lennar was expected to post earnings of $1.94 per share but delivered $1.90, resulting in a surprise of -2.06% [12]. - Over the past four quarters, Lennar has beaten consensus EPS estimates twice [13]. Conclusion - While Lennar does not appear to be a compelling earnings-beat candidate, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].