Lennar Stock Falls After Homebuilder’s Q1 Profit Takes A Hit, Retail’s Still Bullish

Its quarterly revenue of $7.63 billion topped expectations of $7.43 billion, according to FinChat data.

Updated: Mar 24, 2025, 9:00 AM IST

Lennar (LEN) stock slipped 3% in after-hours trading on Thursday after the U.S. homebuilder posted a fall in first-quarter profit.

The company reported a net income of $520 million, or $1.96 per share, for the three months ended Feb. 28, compared with $719 million, or $2.57 per share, in the year-ago quarter.

Its quarterly revenue of $7.63 billion topped expectations of $7.43 billion, according to FinChat data.

Lennar’s average home sales price, net of incentives, declined by 1% to $408,000.

The company said new home deliveries rose to 17,834 homes in the first quarter from 16,798 homes a year earlier.

“While demand remains strong, persistently higher interest rates and inflation, combined with a downturn in consumer confidence and a limited supply of affordable homes, made it increasingly difficult for consumers to access homeownership,” CEO Stuart Miller said.

Its gross margins on home sales fell to $1.4 billion, or 18.7%, from $1.5 billion, or 21.8%, due to an increase in land costs year over year and a decrease in revenue per square foot.

The company forecasted second–quarter new orders between 22,500 and 23,500 and deliveries between 19,500 and 20,500.

Lennar expects the average sales price to fall into the range of $390,000 to $400,000.

“Net prices for homes, together with rents in overbuilt apartment markets, have started to decline, as demand remains constrained by affordability," Miller added.

Retail sentiment on Stocktwits moved to the ‘bullish’ (59/100) territory from ‘neutral’(47/100) a day ago, while retail chatter rose to ‘extremely high.’