Lennar Q2 EPS Miss, Revenue Down 2% and ASP Falls 5%
LEN•Lennar generated adjusted earnings of $1.31 per share and reported EPS of $1.24, narrowly missing the $1.25 consensus, with revenue of $7.9 billion down 2% year-on-year. Home deliveries rose 2% to 20,519 homes while average sales price fell 5% to $371,000 and gross margin slipped to 15.6%.
1. Company Q2 Financial Performance
Lennar posted adjusted EPS of $1.31 and reported EPS of $1.24, missing the $1.25 analyst consensus. Quarterly revenue declined 2% to $7.9 billion, reflecting ongoing affordability pressure and elevated mortgage rates.
2. Home Deliveries and Pricing Trends
The company delivered 20,519 homes, a 2% increase year-over-year, while average sales price decreased 5% to $371,000. This price adjustment underscores affordability challenges in key markets.
3. Margin and Cost Pressures
Gross margin on home sales narrowed to 15.6% from 17.8%, driven by lower revenue per square foot and higher land acquisition costs, partially offset by improved construction efficiencies.
4. Third-Quarter Outlook
Lennar projects Q3 home deliveries between 20,500 and 21,500 units with an average sales price of $375,000 to $380,000, signaling stable volume expectations but continued pricing moderation.
