Lennar Post-earnings Analysis
Chart done on daily timeframe. Shares Lennar are pulling back from their all time highs after the company reported its first quarterly earnings for 2024. Q1 revenue came in at 7.31B vs the 7.39B expectations, but the homebuilding giant still grew its revenue by 12% from same quarter last year. Home deliveries increased by 23% and new orders increased by 28%, which proves resilience in the housing market and endless opportunities for Lennar. Worries about interest rates have been high, but Lennar’s leadership assured investors that they’re “fluctuating within a manageable range”.
The decline in Lennar following their earnings release be because the earnings were already priced in. The stock has been making new all time highs month over month so it could finally be time to take a breather. Last quarter’s revenue was above 11B so the decline to 7B this quarter may have come as a shock to investors, but nonetheless it’s still a decent number. Net profits also hurt this quarter because of the higher interest rates, which naturally scares investors, but Lennar is in a position that allows it to bounce back when interest rates come down.
All in all, we’re bullish on Lennar in the next 24-36 months, but a short term correction is due.