Lennar's New Home Orders in Q4
Plus, Novavax scares investors.
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Lennar's New Home Orders in Q4
Messy financial results sent shares of homebuilder Lennar (NYSE: LEN) down 2.49% in after-hours earnings on Wednesday.
Financials: Lennar reported earnings of $5.02 per share and revenue of $10.2 billion; both were better than expected.
Big Growth: In the quarter, deliveries grew by 13% and total revenues increased by 21%.
Big Drop: The problem with Lennar’s results was that new orders decreased by 15%. Lennar’s cancellation rate also grew from 12% last year to 26% this year.
Quote: “Our sales volume and pricing have clearly been impacted by rising interest rates, but there remains a significant national shortage of housing, especially workforce housing, and there is still demand as we navigate the rebalance between price and interest rates.” - Lennar CEO Stuart Miller.
Stock Price: Shares of Lennar are down 18% this year, but are up 3% in the past 30 days.
Final Thoughts: Even though Lennar’s stock has a good price-to-earnings ratio, this isn’t a good market for homebuilders due to interest rates and macroeconomic challenges.
Notable Earnings Today: Adobe (Nasdaq: ADBE), Jabil (NYSE: JBL), Quanex Building Products (NYSE: NX), Live Ventures (Nasdaq: LIVE).
Notable IPOs Today: GE HealthCare Technologies Inc. Common Stock When-Issued (Nasdaq: GEHCV).
Notable Equity Crowdfunding Campaigns Ending Today: Day One (Republic), HANGOBI by Hang Obi (StartEngine), VORSHEER (StartEngine), SkyMirr (StartEngine), AiViva (StartEngine), Dead Lizard Brewing (Honeycomb), AiViva (StartEngine), HeatGen (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Retail Sales / Core Retail Sales (8:30 a.m. ET), NY Empire State Manufacturing Index (8:30 a.m. ET), Philly Fed Employment (8:30 a.m. ET), Industrial Production (9:15 a.m. ET), Business Inventories (10:00 a.m. ET), Treasury International Capital (TIC) Net Long-Term Transactions (4:00 p.m. ET).
Novavax Scares Investors With Offering
A new offering from Novavax (Nasdaq: NVAX) caused shares of the biotechnology company to drop 10.45% in after-hours trading on Wednesday.
Details: Novavax rolled a proposed offering of $125 million in convertible senior notes and a $125 million offering of its common stock. Investors didn’t appreciate the offerings.
Capital: Proceeds from the offerings will be used for the launch of new products, paying debt, and research and development.
Stock Price: Novavax is down 87% in 2022, including a 25% drop in the last 30 days.
Final Thoughts: Despite releasing a Covid vaccine, Novavax has struggled. This new offering is proof that the company still needs financial assistance.
Warner Bros. Discovery Sees Higher Costs
Shares of Warner Bros Discovery (Nasdaq: WBD) ticked down 0.55% in after-hours trading on Wednesday after the media company revised a previous filing.
Details: The company originally said in October that it would incur charges of $3.2 billion to $4.3 billion related to its restructuring. Now, the company anticipated restructuring charges of $4.1 billion to $5.3 billion.
Final Thoughts: Warner Bros Discovery, which is down 56% this year, could also face higher financial charges as restructuring continues to unravel.
Trends to Watch
Bitcoin at a Crossroads: Bitcoin retraces intraday gains as bears aim to pin BTC price under $18K (Cointelegraph)
Big Overhaul: SEC Proposes Rules That Would Squeeze Stock-Market Middlemen (The Wall Street Journal)
Make it Stop: Powell Says Fed Still Has a ‘Ways to Go’ After Half-Point Hike (Bloomberg)
Be Careful on the Web: SEC says social media influencers used Twitter and Discord to manipulate stocks (NBC News)
Come on in: Retail investors pile into Tesla as shares remain under pressure (Yahoo! Finance)
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