Lennar Corporation (NYSE: LEN) has confirmed that it will release its Q3 2021 earnings on Monday, September 13, 2021.
What to look for
The company is expected to report YoY growth in earnings in higher revenues for the quarter ended August 2021. The estimates offer a good sense of Lennar's earnings, and how the actual earnings will compare with the estimates will be a factor that will influence the stock price in the near term.
Earnings: Stockearning’s Estimated EPS for Lennar in Q3 is $3.24 per share, representing a YoY increase of 52.8%. Historical EPS Performance in the past 12 quarters indicates that the company has topped estimates 11 times (91%) and missed estimates once (8%). In the second quarter, the company had EPS of $2.95 against estimates of $2.34.
Revenue: In Q2 2021, the company reported revenue of $6.4 billion, driven by growth in deliveries, new orders, and backlog. Net margins for homebuilding were 41.1 billion. The company's net earnings in Q2 were $831.4 million or $2.65 per share. For Q3 2021, the company expects revenue of $7.27 billion, a 23.8% YoY increase.
Stock Movement: Since the last earnings release, the company's shares have gained 15.6%. Following the earnings release, the stock price has been UP 32 times over the past 47 quarters. Therefore, the Historical price reaction indicates a 68% chance for the share price to move UP after the company releases Q3 2021 earnings. According to Stockearning’s algorithm, the predicted first-day move following earnings release is 3%, while the expected move on the seventh day is 5%.
What analysts are saying
Recently Argus analysts Chris Graja maintained his “Buy” rating and price target of $115 o Lennnar after the company topped its Q2 earnings and offered solid guidance. The company management also provided an update regarding the previously announced plans of a spinoff of ancillary units to become a homebuilding/financial services entity. Graja is optimistic about its edge relative to rivals, including geographic range adding to stable earnings growth and marketing efforts focusing on entry-level buyers across Carolinas, Florida, and Texas.
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