Earnings Insight - Lennar

LONDON, October 7, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings insight on Lennar Corp. (NYSE: LEN). On September 17, 2014, the company reported its financial results for Q3 FY14 (period ended August 31, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Lennar Corp. During Q3 FY14, Lennar Corp.'s total revenue surged 26% Y-o-Y and diluted EPS increased $0.24 from the preceding year quarter. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Lennar Corp.'s total revenue during the reported quarter increased to $2.01 billion from $1.60 billion in the prior year quarter. The company's Q3 FY14 total revenues exceeded Bloomberg analysts' estimates of $1.96 billion. Lennar Corp.'s revenues from its homebuilding segment surged 25% Y-o-Y to $1.83 billion. Revenues from the homebuilding segment were primarily driven by a 10% increase in the number of home deliveries, excluding unconsolidated entities, and a 14% increase in the average sales price of homes delivered. Lennar Corp.'s revenues from financial services segment grew to $128.38 million in Q3 FY14 from $112.64 million in the previous year. Revenues from Rialto Investments during the reported quarter increased to $40.85 million from $27.81 million in Q3 FY13. Further, the company's revenues from Multifamily segments for Q3 FY14 stood at $14.04 million, compared to $0.70 million in the previous year. The free research on LEN can be downloaded as in PDF format at:

www.Investor-Edge.com/LENFreeReport

During Q3 FY14, net earnings attributable to Lennar Corp.'s shareholders broadened to $177.76 million, or $0.78 per diluted share, from $120.66 million, or $0.54 per diluted share in Q3 FY13. The company's reported quarter's net income outperformed Bloomberg analysts' forecasts of $153.83 million, or $0.67 per diluted share.

Stuart Miller, CEO of Lennar Corp., stated that the Company is extremely pleased with the Q3 FY14 results as it achieved solid profitability in each of its reporting segments. Lennar Corp.'s core homebuilding business continues to drive earnings, with strong sales, deliveries and margins. New orders in the quarter rose 23% over the prior year, with increases in each of its segments. The company's gross and operating margins edged higher year over year to 25.2% and 14.8%, respectively. Lennar's sales backlog increased 29% from last year to approximately $2.5 billion, providing an excellent foundation going forward. Sign up and read the free analyst's notes on LEN at:

www.Investor-Edge.com/LEN-07102014

Lennar Corp.'s CEO mentioned that the housing market in general has continued its slow and steady recovery. This recovery has been driven by years of production deficit that has limited supply while demand has come back to the market. Concurrently, the market has been constrained by reduced access to credit available to many potential purchasers. The recovery has travelled in a fairly narrow channel driven by a need for production and limited by credit availability. Within that channel the road has been somewhat volatile, atypical of previous recoveries, and often difficult for many to read. Lennar's core homebuilding business is hitting on all cylinders as the company has properly considered and understood the uniqueness of this recovery.

Mr. Miller added that by complementing the company's core homebuilding business, Lennar Multifamily recorded its first two sales of apartment properties in the third quarter. Both sales produced greater than the company's targeted 25% return on invested capital, and demonstrated that the company's multifamily segment is maturing and beginning to contribute to the bottom line. Lennar's geographically diversified $5 billion pipeline of multifamily product will become a more predictable source of quarterly earnings starting in late 2015 and 2016. Visit Investor-Edge and access the latest research on LEN at:

www.Investor-Edge.com/LENEarningsCoverage

Lennar's CEO mentioned that Rialto has continued to develop and expand its strategic plan to become a best in class asset manager, as it is now returning cash to the company and producing consistent bottom line results. Rialto's fund investments are poised for strong long-term returns while the commercial mortgage origination business provides steady, current earnings.

Mr. Miller concluded that while the company's homebuilding business continues to be the primary driver of its quarterly earnings, the company is extremely well positioned across all of its platforms to continue to produce industry-leading results.

Stock Performance 

On the day of the earnings release, September 17, 2014, shares in Lennar Corp. surged 5.80% and ended the session at $41.40. However, the stock has declined 2.51% since then, although, on the last trading session, Monday, October 06, 2014, it finished at $40.36 which was 1.28% above its previous day's closing price. A total of 3.22 million shares were traded, slightly above its three months average volume of 2.85 million shares. Over the previous three trading sessions and over the last one month, the company's shares have gained 4.70% and 3.81%, respectively. Moreover, the stock has advanced 2.02% from the beginning of 2014. Shares in Lennar Corp. are trading above their 50-day and 200-day moving averages of $38.49 and $39.60, respectively. Furthermore, the stock traded at a PE ratio of 16.41 and has a Relative Strength Index (RSI) of 54.44.

Sneak Peek to Corporate Insider Trading  

In the last one month Lennar Corporation has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on LEN is available at:

www.Investor-Edge.com/LENInsiderTrading

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At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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