Earnings Highlights - Lennar

LONDON, January 22, 2015 /PRNewswire/ --

Investor-Edge.com has issued free earnings highlights on Lennar Corp. (NYSE: LEN). On January 15, 2015, the company reported its Q4 FY14 and full-year FY14 financial results (period ended November 30, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Lennar&d=22-Jan-2015&s=LEN to read our free earnings review on Lennar Corp. (Lennar). During Q4 FY14 and FY14, the company's total revenue surged 35% Y-o-Y and 31% Y-o-Y, respectively. CEO of Lennar, Stuart Miller, stated that as the housing market has continued its slow but steady recovery, the company is extremely pleased with its Q4 FY14 and FY14 results, as Lennar achieved a 50% and 33% Y-o-Y increase in net earnings, respectively. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Lennar&d=22-Jan-2015&s=LEN

Earnings Overview 

During Q4 FY14, Lennar's total revenues increased to $2.58 billion from $1.92 billion in Q4 FY13. Bloomberg's analysts were also expecting total revenues of $2.58 billion in Q4 FY14. The company's Homebuilding segment operating earnings stood at $375.06 million in Q4 FY14, compared to $294.24 million in Q4 FY13. Lennar's Financial Services segment operating earnings for Q4 FY14 was $30.24 million, compared to $17.02 million in Q4 FY13. The company's Rialto segment recorded operating earnings of $38.2 million (including an add back of $1.8 million of net loss attributable to noncontrolling interests), in Q4 FY14, compared to $13.9 million (offset by $1.7 million of net earnings attributable to noncontrolling interests) in Q4 FY13. However, Lennar Multifamily segment reported an operating loss of $6.11 million in Q4 FY14, compared to $6.54 million in Q4 FY13. The free research on LEN can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Lennar&d=22-Jan-2015&s=LEN

In Q4 FY14, the company's gross margin on home sales fell 120 basis points Y-o-Y to 25.6%. Lennar's Q4 FY14 net earnings attributable to the company stood at $245.32 million, or $1.07 per diluted share, compared to $164.08 million, or $0.73 per diluted share. Analysts from Bloomberg had expected the company to report net earnings attributable to Lennar of $220.87 million, or $0.96 per diluted share, in Q4 FY14. In Q4 FY14, deliveries of home were up 23% Y-o-Y to 6,950. The new home orders in Q4 FY14 increased 22% Y-o-Y to 5,492, or 24% Y-o-Y in dollar value to $1.8 billion. Meanwhile, the company's backlog of home in Q4 FY14 increased 21% Y-o-Y to 5,832, or 22% Y-o-Y in dollar value to $2.0 billion.

For FY14, the company's total revenues increased to $7.78 billion from $5.94 billion in FY13. Lennar's total revenues for FY14 missed Bloomberg analysts' forecast of $7.79 billion. Lennar's Homebuilding segment operating earnings was $1,033 million in FY14, compared to $733.08 million in FY13. The company's Financial Services segments operating earnings stood at $80.14 million in FY14, compared to $85.79 million in FY13. Meanwhile, Lennar's Rialto segment operating earnings surged to $66.6 million (including an add back of $22.5 million of net loss attributable to noncontrolling interests) in FY14, from $19.9 million (partially offset by $6.2 million of net earnings attributable to noncontrolling interests) in FY13. However, Lennar Multifamily segment reported an operating loss of $10.99 million in FY14, compared to operating loss of $16.99 million in FY13. Sign up and read the free analyst's notes on LEN at:

http://get.Investor-Edge.com/pdf/?c=Lennar&d=22-Jan-2015&s=LEN

During FY14, Lennar's gross margin on home sales improved to $1.7 billion, or 25.4%, from $1.3 billion, or 24.9% in FY13. The company's FY14 net earnings attributable to Lennar came at $638.92 million, or $2.80 per diluted share, compared to $479.67 million, or $2.15 per diluted share in FY13. Analysts from Bloomberg had expected the company to report net earnings attributable to Lennar of $596.00 million, or $2.64 per diluted share, in Q4 FY14. The deliveries of home was up 15% Y-o-Y to 21,003 in FY14, while the new home orders increased 16% Y-o-Y to 22,029 in FY14.  

Mr. Miller asserted that in fiscal 2015, despite slightly lower gross margins, the company's core homebuilding business is well positioned to deliver strong top and bottom-line growth throughout the year. He stated that while Lennar's homebuilding business continues to be the primary driver of its quarterly earnings, the company is extremely well positioned across all its platforms. He anticipates another year of substantial profitability in 2015, as the housing market continues its slow and steady progression.

Stock Performance 

On the day of the earnings release, January 15, 2015, Lennar's stock plummeted 7.17% to end the session at $42.48. Since then, the stock has moved both ways with gains outperforming the losses so far. On the last close, Wednesday, January 21, 2014, the stock finished 2.22% higher at $43.27, after vacillating between $42.32 and $43.64. A total of 3.79 million shares were traded which was slightly above its three months average volume of 3.76 million shares. Over the previous three trading sessions and over the last three months, the company's shares have advanced 1.86% and 0.72%, respectively. Further, the stock has gained 16.10% in the past one year. Visit Investor-Edge and access the latest research on LEN at:

http://get.Investor-Edge.com/pdf/?c=Lennar&d=22-Jan-2015&s=LEN

Sneak Peek to Corporate Insider Trading 

In the last one month, Lennar has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on LEN is available at:

http://get.Investor-Edge.com/pdf/?c=Lennar&d=22-Jan-2015&s=LEN

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