Monday, September 26, 2005

Lennar (LEN) Reports Record Earnings

Lennar (NYSE: LEN) reported record earnings. They beat estimates that were raised several times. Lennar raised estimates for 2005 to $8.10 and $9.25 for 2006. The stock is trading close to $58 a share right now. Lennar has a forward P/E of about six. Earnings are growing at about 15%. Gross margins were up 340 basis points. Backlog is up 33% and new orders are up 24%. The conference call is tomorrow at 11 AM ET.

The fact of the matter is Lennar is too cheap fundamentally to sell right now. The orders are there and the backlog is there. I would even consider buying at these levels if it wasn't for Mr. Greenspan.

Note: I am long Lennar.


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