Lennar Corporation (NYSE:LEN)
Lennar Corp. Earnings & Technicals
On Tuesday before the market opened, Lennar Corp (LEN) announced second earnings that topped analyst estimates and sent shares spiking in the premarket session. The company announced second quarter earnings of 95 cents per share on $2.75 billion in revenues while analysts were looking for earnings of 87 cents per share on $2.6 billion in revenues. The company also announced that new home orders jumped 10% in the quarter. Analysts currently have an average price target of $54.23.
Looking at the chart you will see that shares gained some momentum in the premarket session with highs hitting $48.95 after closing Monday at $46.66 equaling a 4.9% jump in value. Shares are looking to gap above the 200-day moving average that currently sits at $46.86 but are opening near a big level of resistance at $48 so we’ll have to see how the price action behaves there. Look for further resistance at $49 while support will come in at $46.86 and $46 followed up by $45. Since shares were not able to hold that 200-day moving average and created a very bearish engulfing candle that consumed the entire previous days trading range that makes for a very weak chart so we’ll have to see if shares can hold $46 or if they want to push lower.
CEO Comments
Stuart Miller, Chief Executive Officer of Lennar Corporation (NYSE:LEN), said, “We are very pleased with our second quarter results as we achieved pre-tax earnings of $327.8 million, our highest second quarter pre-tax earnings since 2006. The homebuilding market continued its slow and steady recovery sustained by low interest rates, modest wage growth, positive consumer confidence and low unemployment levels combined with tight inventory levels.”
“As this year’s spring selling season improved over last year, our second quarter new orders increased 10% to 7,962 homes year-over-year, while our home deliveries and home sales revenue also increased to 6,724 homes and $2.4 billion, respectively. As the recovery has continued to mature, we have remained focused on our strategy of moderating our growth rate in community count and home sales, as well as on our soft-pivot land strategy, targeting land acquisitions with a shorter average life.”
LEN Profile
Lennar Corporation, together with its subsidiaries, engages in the homebuilding activities in the United States. The company operates through Homebuilding East, Homebuilding Central, Homebuilding West, Homebuilding Southeast Florida, Homebuilding Houston, and Homebuilding Other segments. Its homebuilding activities primarily include the construction and sale of single-family attached and detached homes to first-time, move-up, and active adult homebuyers, as well as the purchase, development, and sale of residential land.
The company also offers real estate related financial services, including mortgage financing, title insurance, and closing services for home buyers and others, as well as personal lines, property, and casualty insurance products. In addition, it is involved in raising, investing, and managing third party capital; and originating and selling into securitizations commercial mortgage loans, as well as investing in real estate related mortgage loans, properties, and related securities. Further, the company sponsors, invests, and manages private equity vehicles, and provides asset management and other services to the vehicles and other third parties. Additionally, the company develops multifamily rental properties. Lennar Corporation was founded in 1954 and is based in Miami, Florida.