Lennar Corp. (LEN) reported optimistic results in the face of an uncertain housing market. Shares and estimates are surging.
Company Description
Lennar is a home builder in the U.S., making single-family homes and residential buildings. The company buys, develops and sells the properties, in addition to providing financial services to buyers.
Well Ahead of Estimates
On Mar 24 Lennar reported first-quarter results that included a net loss of 4 cents, which came in 28 cents better than expected. The figure is also up from a loss of 98 cents one year ago.
Comments from management were extremely bullish, surrounding an improving housing environment. Lennar’s CEO, Stuart Miller, said the company should reach its target of turning a profit in 2010.
Analysts Love it
The Zacks Consensus for this fiscal year is up 44 cents to a loss of 39 cents over the past 3 months. Next year’s estimates are up 4 cents, to 82 cents. Compare these levels to an 85 cent loss last year.
The Chart
While the future of the housing is uncertain, investors are optimistic about LEN. Shares jumped on the earnings release to new highs. The MACD has also crossed over, producing a buy signal.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service Zacks Investment Research
