Earnings Preview: Lennar Corporation Reports On June 27 Before The Open

| About: Lennar Corporation (LEN)

Lennar Corporation (NYSE:LEN), together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Its homebuilding operations include the construction and sale of single-family attached and detached homes; and the purchase, development, and sale of residential land.

It is scheduled to report its Q2 2012 results on June 27, 2012, before the market opens.

Technical Overview


Key Metrics
  • Market Cap: 5.11B
  • 52-week trading range: 12.14 - 30.12
  • Trailing P/E: 64.20
  • Forward P/E: 19.59
  • Price/Sales: 1.57
  • Price/Book: 1.88
  • PEG Ratio: 1.07
  • Total Debt: 4.33B
  • Annual dividend yield: 0.60%
  • Return on Equity: 2.50%
  • Return on Assets: 1.15%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last quarters. In the last quarter it reported $0.08 EPS, beating analyst estimates of $0.04.

The consensus EPS is $0.17 based on 24 analysts' estimates, up from $0.07 a year ago. Revenue estimates are $882.72M, up from $764.49M a year ago. The median target price by analysts for the stock is $29.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades
  • On April 18, 2012, Compass Point reiterated Neutral rating for the company.
  • On March 28, 2012, MKM Partners reiterated Neutral rating for the company.
  • On March 28, 2012, FBR Capital reiterated Outperform rating for the company.
  • On March 28, 2012, Barclays reiterated Overweight rating for the company.
  • On January 18, 2012, the company was downgraded from Buy to Neutral at UBS.
  • On January 12, 2012, RBC Capital Mkts reiterated Outperform rating for the company.
Latest Developments
  • On May 3, 2012, Lennar Corporation, one of the nation's largest homebuilders, announced that the Company has entered into a 3-year unsecured revolving credit facility that provides the Company with $410 million of financing and expires in May 2015.
  • On April 11, 2012, Lennar Corporation, one of the nation's largest homebuilders, announced that its Board of Directors has declared a quarterly cash dividend of $0.04 per share for both Class A and Class B common stock payable on May 9, 2012 to holders of record at the close of business on April 25, 2012.
  • On March 27, 2012, Lennar reports first quarter EPS of $0.08.
Competitors

Lennar Corp. operates in Residential Construction industry. The company could be compared to DR Horton Inc. (NYSE:DHI), PulteGroup, Inc. (NYSE:PHM), Standard Pacific Corp. (SPF), and Toll Brothers Inc. (NYSE:TOL). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

LEN ChartClick to enlarge

LEN data by YCharts

Competitors' Latest Development
  • On June 19, 2012, Toll Brothers, Inc. and Shea Baker Ranch LLC, a member of the Shea family of companies (Shea), announced a partnership to develop Baker Ranch, a master-planned community approved for over 2,000 new homes in Lake Forest, CA, one of south Orange County's desirable markets.
  • On April 25, 2012, D.R. Horton, Inc. announced that it intends to offer and sell, subject to market and other conditions, approximately $300 million in aggregate principal amount of senior unsecured notes in an offering registered under the Company's currently effective shelf registration statement.
  • On April 25, 2012, D.R. Horton, Inc. announced that it has priced a registered underwritten public offering of $350 million aggregate principal amount of 4.750% senior notes due 2017.
  • On January 5, 2012, Gibraltar Capital and Asset Management, LLC (Gibraltar) (gibraltarcapital.net), a wholly owned subsidiary of Toll Brothers, Inc. announced the closing of another private transaction with a large financial institution.
  • On December 29, 2011, PulteGroup, Inc. announced that it has completed the sale of land approved for approximately 1,500 residences in Broomfield, Colorado to Wheelock Street Capital LLC, a private real estate investment firm.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.