Lennar Earnings Forecast: EPS Decline Signals Caution Ahead

In light of upcoming first-quarter earnings, Lennar Corporation is anticipated to report a profit of $1.76 per share, a 31.5% decrease from the previous year. Analysts' outlook and profit trends indicate challenges that may influence stock performance.

Date: 30-01-2025

AI Rating: 4

Earnings Per Share (EPS)
Analysts expect LEN to report a profit of $1.76 per share for Q1 2025, reflecting a significant decline of 31.5% compared to $2.57 per share from the same quarter last year. This downward trend is likely to have a negative impact on investor sentiment.

Looking at the full fiscal year, the estimated EPS for LEN is $12.52, which is a 9.7% decrease from $13.86 in fiscal 2024. However, there is a projected increase of 24.2%, with EPS expected to rise to $15.55 in fiscal 2026. While this future projection is positive, the immediate EPS decline raises concerns.

Revenue Growth
The reported revenue of $10 billion for Q4 fell short of the Wall Street forecast of $10.2 billion, which indicates challenges in meeting growth expectations. This underperformance can affect overall market perception and stock prices negatively.

Profit Margins
LEN's profit margins have been under pressure due to affordability issues, rising construction expenses, and supply shortages. These factors can negatively affect the company’s ability to maintain profitability, impacting its long-term financial health.

Given the anticipated quarterly earnings and the pressures impacting LEN's performance, stock prices may be affected negatively, especially if reported earnings fall short of expectations. The overall mood among analysts shows caution, as reflected in the moderately bullish consensus, with a mix of 'Moderate Buy' and 'Hold' ratings.

Stocks: LEN SPX XLY