Lennar (LEN) Sees Positive Pricing Trends Despite Lumber Causing Pressure, KeyBanc Reiterates Sector Weight
- S&P 500 nears record high on stimulus hopes, strong earnings
- 'Becoming JP Morgan of the Future': Square (SQ) Dips on Deal to Acquire BNPL Afterpay For $29B in Stock, Benefits Outweigh High Price Says Analyst
- Oil prices hit by concern over Chinese economy and higher supply
- ON Semiconductor (ON) Surges on Strong Q2 Results and Q3 Outlook
- Dollar down again as dovish Fed tone prevails ahead of data
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
KeyBanc analyst Kenneth Zener reiterated a Sector Weight rating on Lennar (NYSE: LEN) after the company 2Q21 revenue rose 21% y/y, with closings up 14% and price up 6%, with 26.1% adjusted gross margin up 450 bps y/y, with 7.6% SG&A and EBT of 18.5%. With rising input cost (lumber) impacting 2Q/3Q results, guidance shows net pricing trends are still favorable, with a blue-sky scenario pointing to lower input costs in FY22.
The analyst stated "LEN results ($2.65 vs. our $2.35, margin beat) reflect sustainable (less land = more cash, spin-outs = simplification) and transitory (price = margins) factors that were unimaginable a year ago, between which investors increasingly need to discriminate. For LEN, rising returns on inventory (ROI) mirror net price leverage amid less capital intensity (land), lifting asset turns and cash (net leverage 14%). We raise our FY21E EPS to $13.75 (was $12.07) and FY22E to $12.48 (was $9.74), both years on higher margins."
Shares of Lennar closed at $94.65 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Silicon Motion Technology (SIMO) PT Raised to $115 at Needham & Company as Order Book Pushes $1.5B
- Heritage-Crystal Clean (HCCI) Setup Looks Good Heading Into 2H - Needham & Company
- Yeti Holdings Inc. (YETI) PT Raised to $110 at Baird into Q2 Results
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Sign 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!