Ticonderoga Maintains a 'Neutral' on Lennar (LEN); EPS Preview: Last Quarter of Negative Homebuilding Operating Income?
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Price: $86.83 -0.81%
Rating Summary:
13 Buy, 14 Hold, 9 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 14 Hold, 9 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga maintains a 'Neutral' on Lennar (NYSE: LEN).
Ticonderoga analyst said, "LEN’s first quarter positive EPS result was driven entirely by Non-Homebuilding segment performance, with the lion’s share coming from Rialto. Similarly, we do not believe results this quarter will provide investors much, if anything different. However, we do expect some sequential improvement in the company’s Homebuilding results even as our absolute dollar Operating Loss is expected to increase. Certainly, results compared to a year ago are expected to deteriorate given the absence of the tax credit benefit. Looking forward, however, should Orders not crater and we believe this could be the last quarter LEN reports negative Homebuilding Operating Income."
"For the quarter, we forecast EPS of $0.02 before impairment charges versus tax credit driven earnings of $0.21 per share last year, which was absent charges...We expect unit Orders to increase 11% to 3,520 on a 9.0% higher community count...Revenues are expected to decline 21% to $643M driven by a 25% decline in unit Closings (2,166) due to a weaker conversion rate than witnessed last year, partially offset by a 1.2% improvement in pricing to $242K."
For more ratings news on Lennar click here and for the rating history of Lennar click here.
Shares of Lennar closed at $17.59 yesterday.
Ticonderoga analyst said, "LEN’s first quarter positive EPS result was driven entirely by Non-Homebuilding segment performance, with the lion’s share coming from Rialto. Similarly, we do not believe results this quarter will provide investors much, if anything different. However, we do expect some sequential improvement in the company’s Homebuilding results even as our absolute dollar Operating Loss is expected to increase. Certainly, results compared to a year ago are expected to deteriorate given the absence of the tax credit benefit. Looking forward, however, should Orders not crater and we believe this could be the last quarter LEN reports negative Homebuilding Operating Income."
"For the quarter, we forecast EPS of $0.02 before impairment charges versus tax credit driven earnings of $0.21 per share last year, which was absent charges...We expect unit Orders to increase 11% to 3,520 on a 9.0% higher community count...Revenues are expected to decline 21% to $643M driven by a 25% decline in unit Closings (2,166) due to a weaker conversion rate than witnessed last year, partially offset by a 1.2% improvement in pricing to $242K."
For more ratings news on Lennar click here and for the rating history of Lennar click here.
Shares of Lennar closed at $17.59 yesterday.
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