Lennar Corporation Faces Market Challenges Amid Earnings Review

With a market capitalization of $28.6 billion, Lennar Corporation (LEN) is a prominent homebuilder operating primarily under the Lennar brand in the United States. Founded in 1954 and based in Miami, Florida, Lennar functions through various segments, including Homebuilding East, Central, Texas, West, Financial Services, Multifamily, and Lennar Other.

Stock Performance: A Year in Review

Over the past year and into 2025, LEN shares have significantly underperformed compared to the broader market. The stock has dropped 35.6% in the last 52 weeks and 19.3% year-to-date. In contrast, the S&P 500 Index ($SPX) has recorded an 11.5% return over the past year, with slight gains in 2025.

When focusing narrowly on market comparisons, LEN has also trailed the iShares U.S. Home Construction ETF (ITB), which has seen a 16.1% decline over the past 52 weeks and a 9% decrease this year.

Q1 Earnings Report: Key Insights

Following the release of its Q1 earnings report on March 20, LEN’s stock experienced a slight decline. The company reported total revenue of $7.6 billion, reflecting a year-over-year growth of 4.4%. This increase was attributed to a 1% rise in new orders, totaling 18,355 homes. Gross margins on home sales stood at 18.7%, equating to $1.4 billion. Notably, the earnings per share (EPS) for the quarter came in at $2.14, surpassing analysts’ estimates by 23%.

Looking ahead to the current fiscal year ending in November, analysts project a decline in LEN’s EPS of 26.8% year-over-year, predicting it will fall to $10.15. Furthermore, the company has outperformed analysts’ consensus estimates in three of the past four quarters, missing expectations only once.

Analyst Ratings and Price Targets

Among the 19 analysts covering LEN, the consensus rating is “Moderate Buy,” supported by five “Strong Buy” and 14 “Hold” recommendations. However, this outlook is slightly less optimistic than two months ago, when six analysts had suggested a “Strong Buy.”

On April 9, Wells Fargo & Company (WFC) analyst Deepa Raghavan maintained a “Hold” rating on LEN, adjusting the price target from $120 to $110. The average price target for LEN stands at $133.78, indicating a potential upside of 21.5% from current levels. In contrast, the highest target of $184.75 suggests an upside potential of 67.8% from existing prices.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.