Today is Wednesday, March 15, 2023.
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Lennar Expects a "New Normal"
Lennar (NYSE: LEN) shares jumped by 3.41% in after-hours trading on Tuesday after the home builder posted strong financial results.
Financials: Lennar reported earnings of $2.12 per share in the past quarter and revenue of $6.49 billion; both were better than expected.
The Good: Deliveries grew by 9% in the past quarter, helping drive revenue by 5%. And although new orders dropped by 10% due to the interest rate environment, the backlog of homes decreased by 29%.
Quote: “The Federal Reserve stayed its course of raising interest rates to cool inflation, though has yet to reach desired results. Homebuyers are considering the possibility that today's interest rate environment may be the new normal.” - Stuart Miller, Executive Chairman of Lennar.
The Bad: Cancellations more than doubled from 10% to 21%.
Stock Price: Shares of Lennar are up 16% in the past 12 months, but are down 2% in the last 30 days.
Final Thoughts: Lennar is trying to ride the housing market recovery wave. The stock also has a better-than-expected forecast for the year, which should please investors.
Notable Earnings Today: Adobe (Nasdaq: ADBE), Arcos Dorados (NYSE: ARCO), Oatly Group (Nasdaq: OTLY), Array Technologies (Nasdaq: ARRY), Calumet Specialty Products Partners (Nasdaq: CLMT), Catalyst Pharmaceuticals (Nasdaq: CPRX), Hookipa Pharma (Nasdaq: HOOK), Five Below (Nasdaq: FIVE), Chindata Group Holdings (Nasdaq: CD), UiPath (NYSE: PATH), Black Rifle Coffee Company (NYSE: BRCC), Audacy (NYSE: AUD), ToughBuilt Industries (Nasdaq: TBLT), Sportradar Group (Nasdaq: SRAD), GrowGeneration (Nasdaq: GRWG), Silence Therapeutics (Nasdaq: SLN), Amyris (Nasdaq: AMRS), Ebix (Nasdaq: EBIX), Franco-Nevada (NYSE: FNV), Proterra (Nasdaq: PTRA), ZTO Express (NYSE: ZTO).
Notable IPOs Today: ICZOOM Group Inc. (Nasdaq: IZM), Optex Systems Holdings, Inc. Common Stock (Nasdaq: OPXS).
Notable Equity Crowdfunding Campaigns Ending Today: YouSolar (StartEngine), The Pickled Chef (Honeycomb).
Notable Economic Events Today: Producer Price Index (8:30 a.m. ET), Retail Sales (8:30 a.m. ET), NY Empire State Manufacturing Index (8:30 a.m. ET), Business Inventories (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET).
Guess? Takes a “Prudent Approach” With Outlook
Photo by Kelsey K / Unsplash
Despite posting better-than-expected financial results, shares of the clothing brand and retailer Guess? (NYSE: GES) dropped by 6.77% in after-hours trading on Tuesday.
Financials: Guess? reported earnings of $1.74 per share in the past quarter and revenue of $917.8 million, both were better than expected.
Outlook: The problem was the guidance. The company expects revenue and the operating margin to decrease in the current quarter. Co-Founder Paul Marciano said the company is “taking a prudent approach” with its outlook.
Final Thoughts: Shares of Guess? are up 16% in the past 12 months, but the bad outlook is troublesome for investors in 2024.
Aptos Jumps on Solid Crypto Day
The price of the cryptocurrency Aptos surged by over 12% on Tuesday and is up by nearly 25% in the past week.
Final Thoughts: Most crypto prices jumped on Tuesday due in part to the situation with some banks closing. But Aptos had an additional benefit: The Aptos Monkeys group announced that applications will be available for projects on the blockchain starting on Wednesday.
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Trends to Watch
No Ideas: Crypto Investors Are Left Guessing the Fed’s Next Move (CoinDesk)
Vacation Over: Vacasa stock plunges after worse-then-expected outlook (MarketWatch)
Social Media Gone Wild: SVB collapse was driven by ‘the first Twitter-fueled bank run’ (CNN)
The Plot Chickens: Tyson Foods to shut two US chicken plants with nearly 1,700 workers (Reuters)
First Place: First Republic Rallies in Volatile Trading (The Wall Street Journal)
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