Homebuilder Lennar's Q4 revenue beats estimates

Overview

• U.S. homebuilder's Q4 revenue beat analyst expectations

• Net earnings per share for Q4 decreased compared to last year

• Company reported an 18% increase in new orders yr/yr

Outlook

• Lennar expects Q1 deliveries of 17,000 to 18,000 homes

• Company anticipates Q1 average sales price between $365,000 and $375,000

• Lennar forecasts full-year deliveries of approximately 85,000 homes

Result Drivers

• AVERAGE SALES PRICE - Decrease in average sales price due to market weakness and increased sales incentives

• COST REDUCTION - Continued focus on cost-saving initiatives helped decrease construction costs

• SALES STRATEGY - Strategic reduction in sales pace and use of incentives like mortgage rate buydowns to sustain momentum

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 11 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "buy."

• Wall Street's median 12-month price target for Lennar Corp is $125.00, about 4.4% above its December 15 closing price of $119.73

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn4T03Ffa

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