Lennar Misses Q1 Home Deliveries, EPS, and Revenue; Forecasts Lower Q2 Gross Margins
LEN is trading near its 52-week low of $92.17 (0.8% below the low) on elevated volume (2.0× avg).
Summary
Lennar reported first-quarter home deliveries of 16,863, falling short of estimates of 17,677, alongside an adjusted EPS of 88 cents against expectations of 96 cents, and revenue of $6.62 billion below the $6.88 billion estimate. This news expands on a prior report of the Q1 revenue miss by adding crucial details on home deliveries, EPS, and forward guidance. The company also provided a cautious outlook for the second quarter, projecting 20,000 to 21,000 home deliveries (compared to analyst estimates of 20,232) and a gross margin on home sales between 15.5% and 16%, a notable decrease from the prior 17.8%. These widespread misses and the lowered margin guidance highlight the ongoing challenges in the housing market due to high mortgage rates and affordability issues, which could further pressure the stock, especially given its proximity to a 52-week low. Traders will closely watch for signs of improvement in housing demand and interest rate stability.
At the time of this announcement, LEN was trading at $91.40 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $22.7B. The 52-week trading range was $92.17 to $144.24. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.