Lennar (LEN) Reports Surprise Q1 Profit on Stronger Margins, New Home Orders Fall on Tough Comps
Tweet
Share
E-mail
Get Alerts LEN Hot Sheet
Price: $151.57 --0%
Revenue Growth %: -16.4%
Financial Fact:
Rialto Investments: 42.91M
Today's EPS Names:
SFST, VLTO, CLIR, More
Revenue Growth %: -16.4%
Financial Fact:
Rialto Investments: 42.91M
Today's EPS Names:
SFST, VLTO, CLIR, More
Join SI Premium – FREE
Lennar Corp. (NYSE: LEN) shares are trading a little bit higher ahead of the open Tuesday, following a stronger-than-expected first-quarter earnings report from the homebuilder.
Net income in the quarter was $27.4 million, or $0.14 per share, which was a swing in positive territory when compared with a loss of $6.5 million for the same period last year.
Revs in the quarter fell 2.9 percent from $574.44 million to $558.05 million this quarter.
Overall, the analyst consensus was looking for a loss of $0.05 per share on revs of $508.23 million.
In terms of new homes, Lennar said orders were down 12 percent to 2,267, with a 17 percent cancellation rate. Orders in the East region saw a 1.2% increase to 982, while Central orders fell 18 percent to 341.
Notably, this quarter provided some tough comps for new home orders. During Q1, Lennar saw its new home orders jump 18 percent to 2,577, with just a 13 percent cancellation rate.
Lennar's backlog also fell 12 percent to 1,948 homes, compared with a 34 percent increase last year.
Chief Executive Officer Stuart Miller attributed the profit to strong margins. He concluded, "While it is unclear whether the spring selling season will gain momentum or continue its sluggish recovery, we are confident that our company is well positioned for a profitable year in 2011."
Lennar shares are trading about 0.7 percent higher in pre-market action.
Net income in the quarter was $27.4 million, or $0.14 per share, which was a swing in positive territory when compared with a loss of $6.5 million for the same period last year.
Revs in the quarter fell 2.9 percent from $574.44 million to $558.05 million this quarter.
Overall, the analyst consensus was looking for a loss of $0.05 per share on revs of $508.23 million.
In terms of new homes, Lennar said orders were down 12 percent to 2,267, with a 17 percent cancellation rate. Orders in the East region saw a 1.2% increase to 982, while Central orders fell 18 percent to 341.
Notably, this quarter provided some tough comps for new home orders. During Q1, Lennar saw its new home orders jump 18 percent to 2,577, with just a 13 percent cancellation rate.
Lennar's backlog also fell 12 percent to 1,948 homes, compared with a 34 percent increase last year.
Chief Executive Officer Stuart Miller attributed the profit to strong margins. He concluded, "While it is unclear whether the spring selling season will gain momentum or continue its sluggish recovery, we are confident that our company is well positioned for a profitable year in 2011."
Lennar shares are trading about 0.7 percent higher in pre-market action.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan is worried about further S&P 500 sell-off potential
- Spotify (SPOT) Tops Q1 EPS by 33c; offers guidance
- Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
Create E-mail Alert Related Categories
Corporate News, 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!
