Lennar Stock Falls 6% Following Profit Decline and Cautious Outlook

The homebuilder reported increased revenue and home deliveries but faced shrinking margins and issued soft guidance for the second quarter.

Lennar's first-quarter revenue rose 5% year-over-year to $7.6 billion, surpassing analysts' estimates, but profit and gross margins declined.
The average home sales price fell 1% year-over-year to $408,000, reflecting ongoing affordability challenges in the U.S. housing market.
Lennar delivered 17,834 homes in the first quarter, up from 16,798 a year ago, as the company sought to align production with demand.
Second-quarter guidance projected lower average sales prices of $390,000 to $400,000 and gross margins of approximately 18%.
Lennar's stock dropped about 6% following the release of its results, with leadership expressing optimism about long-term strategies despite economic headwinds.