Supply Chain Problems Hammer Lennar Earnings

Shares of Lennar Corporation (NYSE: LEN) fell 5.56% in after-hours trading on Wednesday after the homebuilding giant reported mixed earnings. Financials: Lennar reported earnings per share of $3.91, which was below estimates. However, its revenue of $8.4 billion was better than expected. Headwinds: A mixture of supply chain constraints and labor shortages damaged the results. For example, the cost of lumber went up. Demand was also weak, with new home orders increasing by just 2%. Quote: “During the quarter, our homebuilding machine continued to be laser focused on production, even while our cycle time expanded about two weeks from the third quarter driven by rapidly changing supply chain issues,” - Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar. Final Thoughts: The entire home-building industry is impacted by these economic forces. With that being said, Lennar’s stock has a low price-to-earnings ratio, which signals a good value. Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/

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Supply Chain Problems Hammer Lennar Earnings

Dec 16, 2021

bullish

general Analysis

[1 min Read]

Shares of Lennar Corporation (NYSE: LEN) fell 5.56% in after-hours trading on Wednesday after the homebuilding giant reported mixed earnings.

Financials: Lennar reported earnings per share of $3.91, which was below estimates. However, its revenue of $8.4 billion was better than expected.

Headwinds: A mixture of supply chain constraints and labor shortages damaged the results. For example, the cost of lumber went up. Demand was also weak, with new home orders increasing by just 2%.

Quote: “During the quarter, our homebuilding machine continued to be laser focused on production, even while our cycle time expanded about two weeks from the third quarter driven by rapidly changing supply chain issues,” - Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar.

Final Thoughts: The entire home-building industry is impacted by these economic forces. With that being said, Lennar's stock has a low price-to-earnings ratio, which signals a good value.

Hope you enjoyed this commentary. Please subscribe to Early Bird, a free daily newsletter that helps you identify investment trends: https://earlybird.email/

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LEN

Lennar Corporation

69.63

-0.11
-0.16%

Return

-36.13%
Change % Since Posting
-39.38
Change Since Posting
109.01
Price When Posted

Metrics

119.91
Target Price
7/ 10
Confidence
2-6 Months
Timeframe
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Earnings Release
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News
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SEC
Filing
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Sentiment
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