What to Expect When Lennar (LEN) Reports Earnings Results Tomorrow

NEW YORK (TheStreet) -- Lennar Corp. (LEN) will release its second quarter 2015 earnings results before the market open on Wednesday morning. Analysts are expecting the home builder to report a year-over-year rise in its earnings per share and revenue results.

Lennar has been forecast to report earnings of 64 cents per share on revenue of $2.02 billion for the most recent quarter.

Last year, Lennar said it earned 61 cents per diluted share on $1.82 billion in revenue for the 2014 second quarter.

Shares of Lennar are up by 0.37% to $49.18 in after-hours trading today. The stock spent the day in the red, down by 1.01% to $49 by Tuesday's close.

Some home builder stocks were trading in the green on Tuesday, following the release of data showing new single family home sales rose to a seven year high in May.

The Commerce Department said sales gained by 2.2% to a seasonally adjusted annual rate of 546,000 units, the highest level since February 2008, Reuters reports.

Economists polled by Reuters had forecast for a 525,000 unit pace for May.

Separately, TheStreet Ratings team rates LENNAR CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate LENNAR CORP (LEN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, reasonable valuation levels and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 7.6%. Since the same quarter one year prior, revenues rose by 21.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • LENNAR CORP has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, LENNAR CORP increased its bottom line by earning $2.81 versus $2.14 in the prior year. This year, the market expects an improvement in earnings ($3.15 versus $2.81).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Household Durables industry and the overall market, LENNAR CORP's return on equity is below that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: LEN Ratings Report

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