Lennar Corp Class A
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$561.00 | Bcf | Mtglmqrb |
Lennar Earnings: Pricing Actions Drive Strong New Order Growth; Margins Top Guidance
Lennar reported fiscal third-quarter financial results that exceeded management's guidance and our own expectations. With a limited supply of existing homes for sale, more prospective buyers are turning to new construction especially as Lennar and other homebuilders can improve affordability through a mix of sales incentives, base price reductions, and smaller floorplans and lots. Such pricing actions help explain Lennar's lower average selling price and gross profit margin compared with the year-ago quarter, but strong new order growth has returned, and Lennar's profit margin is still above the historical average.