Shares of homebuilder Lennar (NYSE:LEN) fell in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $3.38, which beat analysts’ consensus estimate of $3.23 per share. Interestingly, it’s worth noting that Lennar has beaten earnings estimates eight times during the past nine quarters (including today’s results), as pictured below:
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Sales increased by 8.9% year-over-year, with revenue hitting $8.77. This beat analysts’ expectations by $220 million. In addition, Lennar saw new orders jump by 19% to 21,293 homes, while deliveries increased by 15% to 19,690 homes. As a result, the company’s remaining backlog of 17,873 homes equates to a value of $8.2 billion.
Looking forward, management now expects Q3 deliveries to be between 20,500 and 21,000, with an average sales price of $420,000 to $425,000.
LEN Stock Repurchases $603M Worth of Shares
During the second quarter, LEN repurchased $603 million worth of shares at an average price of $158.64 per share. The firm has regularly repurchased its shares in each of the most recent quarters, as demonstrated in the image below.
Is LEN a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on LEN stock based on six Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 30% rally in its share price over the past year, the average LEN price target of $177.43 per share implies 13.37% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
