Earnings Preview: Lennar Corporation

| About: Lennar Corporation (LEN)
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Company Profile

Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States.

Lennar Corporation (NYSE:LEN) is scheduled to report its second quarter earnings results on June 27, 2012, before market open.

Technical Overview

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Lennar has a market cap of $4.99 billion and it is currently trading around $26.5 with a 52 week range of $12.07 to $30.12. The stock has risen 34.86% year to date. The following table provides the key financial ratios for Lennar:

Key Ratio Value


P/E 64.32
Forward P/E 19.39
Profit Margin 2.51%
Return On Assets (ROA) 0.94%
Return On Equity (ROE) 2.93%

Recent News

  • On May 3, 2012, Lennar Corporation (LEN and LEN.B) 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. The credit facility provides the Company with access to an additional $115 million of financing through an accordion feature, subject to additional commitments, for a maximum aggregate commitment under the facility of $525 million.
  • On April 11, 2012, Lennar 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.

Here's a list of recent changes to analyst ratings:

  • On June 15, 2012 Jefferson Research & Management resumed coverage for Lennar with a SELL recommendation.
  • On June 8, 2012, Citi downgraded Lennar from NEUTRAL to SELL rating and lowered the price target from $26 to $22.
  • On June 1, 2012 Ford Equity Research upgraded Lennar from HOLD to BUY.
  • On May 17, 2012, Williams Financial Group upgraded Lennar from HOLD to BUY with a price target raised from $28 to $35.
  • On May 14, 2012, Guggenheim Securities' James McCanless upgraded Lennar from NEUTRAL to BUY.
  • On May 4, 2012 Ford Equity Research downgraded Lennar from BUY to HOLD.
  • On April 30, 2012 Thomson Reuters/Verus downgraded Lennar from BUY to HOLD.
  • On April 27, 2012 Ford Equity Research upgraded Lennar from FAVORABLE to BUY.
  • On April 23, 2012, CRT Capital downgraded Lennar from BUY to FAIRLY VALUED and maintained a price target of $25.00.
  • On April 19, 2012 Thomson Reuters/Verus upgraded Lennar from HOLD to BUY.
  • On April 18, 2012, Lennar was downgraded to Neutral from Positive at Susquehanna.
  • On April 16, 2012 Ford Equity Research downgraded Lennar from FAVORABLE to NEUTRAL.
  • On April 13, 2012, KeyBanc upgraded Lennar from HOLD to BUY with a price target of $32.00.
  • On April 9, 2012 Ned Davis Research upgraded Lennar from SELL to NEUTRAL.
  • On March 30, 2012 Ford Equity Research upgraded Lennar from UNFAVORABLE to NEUTRAL.

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $885.71 million when compared to $764.49 million for the same quarter last year. Earnings per share for the second quarter are expected to be 17 cents a share, up from a 7 cents a share in the year-ago period.

The average price target from analyst for Lennar is $28.29 with average rating is OVERWEIGHT

Out of the last 4 quarters, Lennar has met or exceeded the EPS estimates 3 times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for Lennar:

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KB HOME (NYSE:KBH), NVR Inc. (NYSE:NVR), PulteGroups, Inc. (NYSE:PHM), and D.R. Horton, Inc. (NYSE:DHI) are considered as major competitors for Lennar and the table below provides the key metrics for these companies:
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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in LEN over the next 72 hours. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.