Benzinga | Jun 15, 2021 10:11AM EDT

Earnings Preview for Lennar

Lennar (NYSE:LEN) unveils its next round of earnings this Wednesday, June 16. Get prepared with Benzinga's ultimate preview for Lennar's Q2 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $2.36 and sales around $5.91 billion. In the same quarter last year, Lennar posted EPS of $1.65 on sales of $5.29 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Wednesday, earnings would be up 43.03%. Revenue would be up 11.78% from the year-ago period. Lennar's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 1.71 2.37 1.55 1.07EPS Actual 2.04 2.82 2.12 1.65Revenue Estimate 5.13 B 6.65 B 5.47 B 4.93 BRevenue Actual 5.33 B 6.83 B 5.87 B 5.29 B

Stock Performance

Shares of Lennar were trading at $92.04 as of June 14. Over the last 52-week period, shares are up 44.26%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lennar is scheduled to hold the call at 10:30:00 ET and can be accessed here.