Lennar Whiffs on Earnings

Lennar (NYS: LEN) reported earnings on Jan. 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q4), Lennar beat expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue expanded, and earnings per share dropped.

Gross margins grew, operating margins grew, net margins shrank.

Revenue details
Lennar tallied revenue of $953 million. The 12 analysts polled by S&P Capital IQ expected a top line of $898 million. Sales were 11% higher than the prior-year quarter's $860 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.16. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. GAAP EPS of $0.16 for Q4 were 5.0% lower than the prior-year quarter's $0.17 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 4.2%, 140 basis points better than the prior-year quarter. Operating margin was 1.2%, 140 basis points better than the prior-year quarter. Net margin was 3.2%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $659 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $3.4 billion. The average EPS estimate is $0.78.

Investor Sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 483 members out of 1,186 rating the stock outperform, and 703 members rating it underperform. Among 398 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Lennar a green thumbs-up, and 259 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lennar is outperform, with an average price target of $20.17.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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