Lennar Q3 revenue misses analyst estimates amid market weakness
LEN•What drove the weaker results
- Higher mortgage rates — the company said increased rates and affordability constraints led consumers to slow purchase decisions, reducing new orders and deliveries.
- Lower home sales prices — Lennar attributed the decrease in average sales price to continued market weakness.
- Declining gross margins — the company said gross margins fell due to lower revenue per square foot and higher land costs, partially offset by reduced construction costs from cost-saving initiatives.
Analyst coverage and valuation
The current average analyst rating on the shares is hold, with 2 strong buy or buy, 9 hold, and 9 sell or strong sell recommendations.
The average consensus recommendation for the homebuilding peer group is buy.
Wall Street's median 12-month price target for Lennar Corporation is $85.00, about 6.2% above its September 15 closing price of $80.07.
The stock recently traded at the next 12-month earnings, versus a P/E of 13 three months ago.
