Homebuilder company Lennar Corp. (NYSE:LEN) reported mixed Fiscal first quarter results with net earnings of $2.57 per diluted share as compared to $2.06 per diluted share in the same period last year. Analysts expected Lennar to report earnings of $2.21 per share in the first quarter.
The company posted total revenues of $7.3 billion, up by 13% year-over-year but fell short of consensus estimates of $7.39 billion.
The company’s management stated that despite interest rate fluctuations, buyers responded well to sales incentives, resulting in a 28% increase in new orders and a 23% rise in deliveries.
Lennar expects new orders for Q2 to fall within the range of 20,900 to 21,300, with anticipated home deliveries between 19,000 and 19,500 The company has projected an average sales price in the range of $420,000 to $425,000, with a gross margin on home sales likely to be around 22.5%.
Is LEN a Good Stock to Buy?
Analysts remain cautiously optimistic about LEN stock with a Moderate Buy consensus rating based on nine Buys, four Holds, and one Sell. Year-to-date, LEN stock has gone up by 11% and the average LEN price target of $160.17 implies a downside potential of 3.2% at current levels.
