Lennar Company (NYSE:LEN) reported fourth-quarter earnings that fell in need of analyst expectations, sending shares down 7.8% in after-hours buying and selling.
The homebuilder’s outlook for the upcoming quarter additionally got here in beneath Wall Road forecasts as increased mortgage charges weighed on demand.
Lennar posted adjusted earnings per share of $4.03 for the quarter ended November 30, lacking the analyst consensus of $4.20. Income got here in at $9.95 billion, beneath estimates of $10.06 billion however up 8% YoY.
The corporate delivered 22,206 houses in This autumn, with a mean gross sales worth of $430,000, barely down from final 12 months.
New orders of 16,895 houses fell in need of Lennar’s steering of no less than 19,000, as rising rates of interest impacted affordability and slowed gross sales tempo.
“In the midst of our fourth quarter, the housing market that seemed to be enhancing because the Fed minimize short-term rates of interest, proved to be far more difficult as mortgage charges rose nearly 100 foundation factors by means of the quarter,” mentioned Stuart Miller, Government Chairman and Co-CEO.
For Q1 2025, Lennar expects to ship between 17,000 and 17,500 houses, with a mean gross sales worth of $410,000 to $415,000. The corporate forecasts gross margin on house gross sales of 19.0% to 19.25%, down from 22.1% in This autumn 2024.
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