Lennar (LEN) Now Profitable for Two Straight Years; Q1 Sales Jump 30%
Tweet
Share
E-mail
Get Alerts LEN Hot Sheet
Price: $87.02 +1.87%
EPS Growth %: -35.0%
Financial Fact:
Rialto Investments: 42.91M
Today's EPS Names:
BTTX, VAXX, ELYS, More
EPS Growth %: -35.0%
Financial Fact:
Rialto Investments: 42.91M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Join SI Premium – FREE
Lennar (NYSE: LEN) shares building some gains Tuesday morning following its early-morning first-quarter 2012 earnings announcement.
Revenue for the Miami, FL-based homebuilder rose 30 percent from $558.05 million in the same period last year to $724.86 million. Net income slipped 45 percent to $14.97 million, or 8 cents per share. Earnings represent the eighth quarter of profitability for Lennar.
Analysts on the Street were looking for revs of $699.7 million and earnings of just 4 cents per share.
Gross margin on sales rose 90 basis points to 20.9 percent.
New orders rose 33 percent to 3,022, with a cancellation rate of 18 percent. Deliveries popped 29 percent. Lennar's backlog rose 29 percent to 2,711 units.
"We recorded our strongest first quarter sales since 2008, with new orders increasing 33% year-over-year. We have been able to increase sales prices and have started to reduce sales incentives in some of our communities," commented CEO Stuart Miller. "We have also seen a noticeable improvement in our sales pace per community, which should lead to a significant increase in the operating leverage of our homebuilding segment in the second half of the year."
Lennar's Rialto Investments segment reported net operating earnings of $5.1 million with revs of $32.2 million, both lower than the preceding year.
Shares of Lennar are up 3.3 percent at last check.
Revenue for the Miami, FL-based homebuilder rose 30 percent from $558.05 million in the same period last year to $724.86 million. Net income slipped 45 percent to $14.97 million, or 8 cents per share. Earnings represent the eighth quarter of profitability for Lennar.
Analysts on the Street were looking for revs of $699.7 million and earnings of just 4 cents per share.
Gross margin on sales rose 90 basis points to 20.9 percent.
New orders rose 33 percent to 3,022, with a cancellation rate of 18 percent. Deliveries popped 29 percent. Lennar's backlog rose 29 percent to 2,711 units.
"We recorded our strongest first quarter sales since 2008, with new orders increasing 33% year-over-year. We have been able to increase sales prices and have started to reduce sales incentives in some of our communities," commented CEO Stuart Miller. "We have also seen a noticeable improvement in our sales pace per community, which should lead to a significant increase in the operating leverage of our homebuilding segment in the second half of the year."
Lennar's Rialto Investments segment reported net operating earnings of $5.1 million with revs of $32.2 million, both lower than the preceding year.
Shares of Lennar are up 3.3 percent at last check.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Arena Group to rename as Paradium.AI, ticker changing to PAAI
- Bernstein remains bullish on SpaceX but sees challenges in telecom ambitions
Create E-mail Alert Related Categories
EarningsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
