Here's What to Expect From Lennar (LEN) in Q2 Earnings

Core Viewpoint - Lennar Corporation is expected to report its second-quarter fiscal 2024 results, with earnings anticipated to show growth while revenues are projected to increase modestly compared to the previous year [1][2]. Earnings and Revenue Estimates - The Zacks Consensus Estimate for earnings per share is $3.20, reflecting an 8.8% increase from $2.94 in the same quarter last year [2] - Revenue estimates stand at $8.57 billion, indicating a 6.6% growth from $8.05 billion reported a year ago [2]. Sales and Deliveries - Home sales for the fiscal second quarter are expected to rise 6.4% year over year to $8.1 billion, with homebuilding revenues projected at $8.2 billion, also up 6.4% [3]. - The company anticipates home deliveries between 19,000 and 19,500 units, with an average selling price (ASP) of $420,000 to $425,000, down from $449,000 a year ago [3]. - Estimated deliveries for the upcoming quarter are pegged at 19,200 homes, marking a 12.4% increase from 17,074 units last year, with an expected ASP of $423,190 [3]. New Orders and Backlog - New orders are expected to range from 20,900 to 21,300, reflecting an 18.3% growth from 17,885 reported in the second quarter of fiscal 2023 [4]. - The backlog is estimated at 18,220 homes valued at $8.32 billion, compared to 20,214 units or $9.53 billion a year ago [4]. Cost and Margin Expectations - Higher costs for land, labor, and raw materials are anticipated to pressure margins, with homebuilding gross margin expected to remain flat at 22.5% year over year [4]. - Selling, general and administrative (SG&A) expenses as a percentage of home sales are projected to be 7.2%, up from 6.7% in the year-ago quarter [5]. Financial Services Performance - Financial Services operating earnings are expected to be between $110 million and $115 million, with a model prediction of $113.3 million, slightly up from $112.6 million in the previous year [5]. Earnings Prediction Model - The current model does not predict an earnings beat for Lennar, as the company has an Earnings ESP of 0.00% and a Zacks Rank of 3 [6].