Categories AlphaGraphs, Consumer, Earnings

Lennar’s stock gains as Q2 results beat expectations

Lennar Corporation (NYSE: LEN) topped market estimates on revenue and earnings for the second quarter of 2019, sending shares climbing 4% in premarket hours on Tuesday. The consensus estimate was for earnings of $1.13 per share on revenue of $5.1 billion.

Total revenues rose 2% year-over-year to $5.6 billion. Net earnings improved to $421.5 million, or $1.30 per share, from $310.3 million, or $0.94 per share, in the prior-year period. The quarterly results benefited from first-quarter deliveries postponed by weather as well as a recovery in the housing market.  

Lennar reports second quarter 2019 earnings results

During the quarter, total deliveries increased 5% to 12,729 homes. New orders increased 1% to 14,518 homes while the dollar value of new orders was down 4% to $5.8 billion. Backlog decreased 3% to 19,061 homes while the backlog dollar value was down 10% to $7.7 billion.

Jon Jaffe, President of Lennar, said, “During the second quarter, we continued to experience cost pressures due to land and labor shortages. These cost pressures were somewhat offset by a decrease in lumber prices and the benefit of synergies from our CalAtlantic acquisition. In the next two quarters, we expect to see margin improvement driven by a combination of additional lumber savings and direct cost synergies.”    

In the Homebuilding segment, revenues from home sales grew 4% year-over-year to $5.2 billion, helped by an increase in the number of home deliveries. New deliveries increased to 12,706 homes from 12,078 homes last year, mainly due to higher home deliveries in the East and Texas segments. The average sales price of homes decreased to $407,000 from $413,000 last year mainly due to product mix.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top