Lennar Corporation Prepares for First-Quarter Earnings Release
Leading Homebuilder Faces Tough Market Conditions
Lennar Corporation (LEN), based in Miami, Florida, is one of America’s top homebuilders with a market capitalization of $35.9 billion. The company specializes in constructing and selling single-family homes, developing residential land, managing multifamily rental properties, and offering services related to residential mortgages, insurance, and closing. Lennar is set to announce its fiscal first-quarter earnings for 2025 on Wednesday, March 12.
analysts predict that Lennar will report a profit of $1.76 per share on a diluted basis, a significant drop of 31.5% compared to $2.57 per share from the same quarter last year. Over the past year, Lennar has outperformed consensus estimates in three of the last four quarters but did miss expectations once.
Looking at the full year, experts forecast Lennar’s earnings per share (EPS) to reach $12.52. This represents a decline of 9.7% from $13.86 in fiscal 2024. However, analysts are optimistic about a rebound, projecting a 24.2% increase to $15.55 EPS in fiscal 2026.
Over the last 52 weeks, LEN stock has fallen by 8.3%, underperforming the S&P 500, which gained 24.1%, and the Consumer Discretionary Select Sector SPDR Fund (XLY), which saw a remarkable gain of 34.9% in the same period.
The challenges facing Lennar include affordability concerns, rising mortgage rates, and inflation, all of which have reduced demand, especially among move-up buyers. Additionally, the company has faced increased construction costs, supply shortages, and regulatory challenges that have further squeezed its profit margins.
On December 18, LEN shares declined by over 3% after the company disclosed its Q4 results. While its adjusted EPS of $4.03 did exceed Wall Street’s expectations of $4.16, revenue fell short at $10 billion compared to the anticipated $10.2 billion.
Overall, analysts maintain a moderately bullish sentiment on LEN stock, assigning it a “Moderate Buy” rating. Out of 19 analysts covering the stock, five recommend a “Strong Buy,” one recommends a “Moderate Buy,” and 13 suggest holding. The average analyst price target stands at $160.77, indicating an estimated upside of 18.2% from current levels.
On the date of publication,
Kritika Sarmah
did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are provided for informational purposes only. For more information, please view the Barchart Disclosure Policy
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