Homebuilder Lennar Corporation (LEN) on Tuesday posted a 45% decline in first quarter earnings, but results still beat Wall Street expectations.
The Miami-based company reported first quarter net income of $15 million, or 8 cents per share, compared with $27.4 million, or 14 cents per share, in the year-ago period. Last year’s results included a big one-time benefit stemming from a legal settlement.
Revenue surged 30% from last year to $724.9 million.
On average, Wall Street analysts expected a smaller profit of 4 cents per share, on lower revenue of $669.7 million.
In other news, LEN noted its cancellation rate stood at 18% during the latest period, while its construction backlog rose 39% to 2,711 homes.
Lennar shares rose 80 cents, or +3%, in premarket trading Tuesday.
The Bottom Line
Shares of Lennar (LEN) have a .61% dividend yield, based on last night’s closing stock price of $26.40. The stock has technical support in the $22 price area. If the shares can firm up, we see overhead resistance around the $30 price level.
Lennar Corporation (LEN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.