Lennar Corp. (NYSE:LEN) shares are trading lower Thursday after the company reported financial results for the third quarter after the market close on Wednesday.
- Lennar shares are experiencing downward pressure. What’s pulling LEN shares down?
A Deteriorating Housing Market Weighs on Results
Lennar reported adjusted earnings of $1.23 per share ($1.19 GAAP), missing the consensus estimate of $1.30. In addition, the company reported revenue of $8.05 billion, missing the consensus estimate of $8.31 billion.
New orders decreased 9% year-over-year to 20,879 homes, and deliveries fell 3% year-over-year to 20,840 homes. Revenue from home sales fell 6% in the quarter to $7.7 billion, with a gross margin on home sales of 15.8%. The homebuilder ended the period with a backlog of 16,857 homes, valued at approximately $6.3 billion.
“While our earnings of $1.19 per share were below expectations, they reflect the nature of the environment in which we are operating, which has deteriorated since our last earnings call,” said Stuart Miller, Executive Chairman, President, and CEO of Lennar.
A Cautious Fourth-Quarter Outlook
Lennar expects new orders in the fourth quarter to be between 19,500 and 20,500 homes. The company also expects to deliver 22,000 to 23,000 homes in the fourth quarter at an average sales price of $370,000 to $380,000, versus an average sales price of $372,000 in the third quarter.
Lennar Shares Trade Lower
LEN Price Action: At the time of publication, Lennar shares are trading 1.34% lower at $77.31, according to data from Benzinga Pro.
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