Overview

• The homebuilder posted a 46% year-over-year profit decline, with adjusted earnings of $2.00 per share missing the roughly $2.10 consensus.
• Quarterly revenue fell from a year ago and came in below analysts’ estimates, underscoring softer housing demand.
• Lennar projected fourth-quarter deliveries of 22,000 to 23,000 homes, short of LSEG-tracked expectations above 25,000.
• To sustain sales, the company used incentives such as mortgage-rate buydowns, lowering the average sales price to $383,000 and pushing the home sales gross margin down to 17.5%.
• Operationally, new orders rose 12% to 23,004, deliveries were roughly flat at 21,584, and the backlog stood at 16,953 homes valued around $6.6 billion, while shares fell about 4% in after-hours trading as some analysts downplayed near-term benefits from the Fed’s rate cut.