Lennar (LEN) got here out with quarterly earnings of $2.82 per share, beating the Zacks Consensus E
Lennar (LEN) got here out with quarterly earnings of $2.82 per share, beating the Zacks Consensus Estimate of $2.38 per share. This compares to earnings of $2.13 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 18.49%. 1 / 4 in the past, it was anticipated that this homebuilder would submit earnings of $1.51 per share when it truly produced earnings of $2.12, delivering a shock of 40.40%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
Lennar, which belongs to the Zacks Constructing Merchandise – Dwelling Builders business, posted revenues of $6.83 billion for the quarter ended November 2020, surpassing the Zacks Consensus Estimate by 4.31%. This compares to year-ago revenues of $6.97 billion. The corporate has topped consensus income estimates 3 times over the past 4 quarters.
The sustainability of the inventory’s speedy value motion based mostly on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Lennar shares have added about 32.4% for the reason that starting of the 12 months versus the S&P 500’s acquire of 14.4%.
What’s Subsequent for Lennar?
Whereas Lennar has outperformed the market to this point this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified these days.
Empirical analysis exhibits a robust correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested ranking device just like the Zacks Rank, which has a powerful monitor file of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Lennar was favorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #1 (Sturdy Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You’ll be able to see the entire checklist of at the moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $1.31 on $5.01 billion in revenues for the approaching quarter and $7.97 on $24.38 billion in revenues for the present fiscal 12 months.
Buyers ought to be conscious of the truth that the outlook for the business can have a cloth affect on the efficiency of the inventory as nicely. When it comes to the Zacks Trade Rank, Constructing Merchandise – Dwelling Builders is at present within the prime 15% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Lennar Company (LEN): Free Inventory Evaluation Report
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