Wed, Nov. 30, 12:11 PM
- Those getting mortgages prior to last few weeks were "likely the last" to lock in at historically low rates, says the NAR's Larry Yun following this morning's disappointing Pending Home Sales report.
- That report was for October, but in more current news, mortgage applications dove another 9.4% in the week ended Nov. 25 (seasonally adjusted). They've been on a downward track for a few weeks, with the speed mostly picking up amid the sharp rise in rates since the election.
- Turning to rates, the 10-year Treasury yield is carving out a new 12-month-plus high, up 11 basis points to 2.40%.
- The S&P 500 is flat, but the ITB is down 1.8%, and XHB 1.2%.
- Toll Brothers (TOL -2.1%), Lennar (LEN -3.4%), Pulte (PHM -1.8%), D.R. Horton (DHI -3.8%), M.D.C. Holdings (MDC -2.1%), Taylor Morrison (TMHC -1.5%)
Thu, Nov. 17, 11:43 AM
- This morning's housing starts for October was off the charts - rising 25.5% from September to the fastest pace in nine years. Stripping out the notoriously volatile multifamily starts still leaves single family starts up 10.2% from September.
- Of course, interest rates continue to rise - with the 10-year Treasury yield up another three basis points to 2.26% - but the builders can worry about that another time.
- The S&P 500 is ahead 0.35%, with the homebuilders are outperforming by a mile.
- Toll Brothers (TOL +2.9%), LGI Homes (LGIH +6.2%), Taylor Morrison (TMHC +3.5%), KB Home (KBH +2.4%), Lennar (LEN +2.5%), Hovnanian (HOV +1.4%), Pulte (PHM +2.7%), D.R. Horton (DHI +3.2%), NVR (NVR +1.8%)
Mon, Oct. 31, 9:32 AM
- With the go-shop period for WCI Communities (NYSE:WCIC) ending with no offers superior to Lennar's (NYSE:LEN) $23.50 per share bid, analyst Buck Horne upgrades Lennar to Strong Buy.
- The deal, he says, could immediately add $0.15 per share to Lennar's fiscal 2017 results. Taking control of WCIC's 14K+ controlled homesites in Florida is a "unique opportunity" in Lennar's core geography at a "compelling" valuation, says Horne. The combined company will be the dominant homebuilder in Florida for years to come.
- The $51 price target for LEN suggests 22% upside.
- Alongside, Horne downgrades WCIC to Market Perform from Outperform.
- Previously: Lennar in deal to buy WCI Communities (Sept. 22)
Mon, Oct. 17, 10:04 AM
- The homebuilders have mostly had a rough run of it since interest rates began rising late this summer, but Lennar (NYSE:LEN) has suffered more than most peers, down 13.75% over the last three months vs. a 7.8% decline for the ITB.
- It's an outlier to the upside today though, with a 1.25% advance on the back of an upgrade to Buy at Buckingham Research.
Wed, Oct. 5, 7:18 AM
- Lennar's (NYSE:LEN) wholly owned subsidiary LMC received another $250M commitment to its Lennar Multifamily Venture, thus completing fundraising for the vehicle at $2.2B raised.
- LMC intends to develop and own Class A apartment communities in 25 target markets throughout the country.
- LMC launched in 2011, and currently has 13.3K units in 45 communities operating or under construction. Lennar President Rick Beckwitt says the strategy at this point in the cycle is to "build to own" rather than "build to sell."
Thu, Sep. 22, 7:05 AM
- The cash and stock deal valued at $23.50 per share is a 37% premium to WCI's (NYSE:WCIC) close yesterday, and gives the company an equity value of $643M and an enterprise value of $809M.
- The current plan is for Lennar (NYSE:LEN) to pay $11.75 in cash and common stock valued at $11.75 for each share of WCIC.
- The deal combines two of the largest Florida homebuilders, and includes a portfolio of owned and controlled land by WCI totaling 14,200 homesites - mostly located in the Florida coastal markets.
- WCI has a 35-day go-shop period.
- WCIC +34% premarket to $23.
Wed, Sep. 21, 4:52 PM
Tue, Sep. 20, 12:25 PM
- Lennar (NYSE:LEN) was initially higher following this morning's earnings beat, but has turned lower by 4.3% amid cautious earnings call comments on margins.
- Also at work is today's housing starts report which showed an unexpected sharp decline from July to August, with single-family starts dropping to a 10-month low.
- ITB -1.4%, XHB -0.9%
- Hovnanian (HOV -0.9%), KB Home (KBH -1.4%), Pulte (PHM -3.2%), D.R. Horton (DHI -1.2%), Toll Brothers (TOL -1.4%), Taylor Morrison (TMHC -2.5%), LGI Homes (LGIH -1.3%)
Tue, Sep. 20, 7:16 AM
- FQ3 net earnings of $235.8M or $1.01 per share vs. $223.3M and $0.96 one year ago.
- Deliveries up 7% Y/Y to 6,779 homes.
- New orders up 8% in count to 7,018, up 10% in dollar value to $2.6B.
- Backlogs up 12% in count to 9,253; up 14% in dollar value to $3.4B.
- Gross margin of 22.6% down 150 basis points; operating margin of 13.2% down 90 basis points.
- Lennar Financial Services operating earnings of $53.2M up from $39.4M.
- Conference call at 11 ET
- Previously: Lennar reports FQ3 results (Sept. 20)
- LEN +2.75% premarket
Tue, Sep. 20, 6:02 AM
Mon, Sep. 19, 5:30 PM| Mon, Sep. 19, 5:30 PM
Mon, Sep. 19, 12:01 PM
- The NAHB Index jumped six points to a one-year high of 65 this month vs. expectations for just a marginal gain.
- "With the inventory of new and existing homes remaining tight, builders are confident that if they can build more homes they can sell them," says NAHB Chief Economist Robert Dietz.
- The Lindsey Group's Peter Boockvar calls this month's print "ebullient," but says the key to sustain things will be the behavior of the first-time homebuyer. We're at a 50-year low in the homeownership rate - will potential first-timers continue to prefer renting? The area most in need of new homes are those priced below $250K (to better compete against renting), but margin issues don't make this a terribly profitable segment for homebuilders.
- ITB +1.9%, XHB +1.5%
- Toll Brothers (TOL +1.4%), PulteGroup (PHM +3.1%), D.R. Horton (DHI +2.5%), Lennar (LEN +2.5%), Hovnanian (HOV +2.4%)
Tue, Jul. 26, 10:16 AM
- June new home sales came in at a seasonally-adjusted annualized rate of 592K, up from May's rate of 572K, and the fastest pace since February 2008.
- Expectations had been for 560K.
- The median price of $306.7K was up 6% Y/Y, and inventory fell to 4.9 months at the current sales pace.
- New home sales in Q2 were up 10% from Q1.
- The ITB popped higher on the news, but has retreated a bit since, now up 0.2% on the session. XHB +0.4%
- Toll Brothers (TOL +0.2%), Hovnanian (HOV +0.8%), Lennar (LEN -0.7%), KB Home (KBH +0.1%), PulteGroup (PHM +0.1%)
Thu, Jun. 23, 4:34 PM
Tue, Jun. 21, 7:07 AM
- FQ2 (ended May 31) net earnings of $218.5M or $0.95 per share vs. $183M and $0.79 one year ago.
- On a Y/Y basis: Deliveries up 12% to 6,724 homes.
- New orders up 10% in homes to 7,692 and 11% in dollars to $2.9B.
- Backlog up 12% in homes to 9,014 and 15% in dollars to $3.3B.
- Operating earnings of $342.7B up 17%.
- Gross margin on home sales of 23.1% down 70 basis points.
- Financial services operating earnings of $44.1M up from $39.1M.
- Conference call at 1 ET
- Previously: Lennar reports FQ2 results (June 21)
- LEN +0.75% premarket
Tue, Jun. 21, 6:04 AM
- Lennar (NYSE:LEN): FQ2 EPS of $0.95
- Revenue of $2.75B (+15.1% Y/Y)