Lennar Shares Drop 4.87% on Q1 EPS Forecast Cut of 55%
Lennar shares dropped 4.87% to $110.73, underperforming the S&P 500’s 0.81% gain, Dow’s 0.63% rise and Nasdaq’s 1.26% advance. Q1 EPS are projected at $0.96, down 55% year-over-year on $6.83 billion revenue, while full-year EPS of $6.44 and $33.0 billion in sales imply declines of 20.1% and 3.5%.
1. Stock Performance
Lennar shares closed at $110.73, down 4.87% in the latest session, lagging the S&P 500’s 0.81% gain, Dow’s 0.63% rise and Nasdaq’s 1.26% advance. Over the past month, the stock has gained 5.75%, trailing the Construction sector’s 8.81% rise but outperforming the S&P 500’s 0.25% loss.
2. Earnings Forecasts
Analysts project first-quarter EPS of $0.96, a 55.14% decline from last year, on $6.83 billion in revenue, down 10.47% year-over-year. For the full fiscal year, consensus estimates call for EPS of $6.44 (-20.1%) and sales of $33.0 billion (-3.48%).
3. Valuation and Analyst Rank
Lennar carries a Zacks Rank of #5 (Strong Sell) after a 5.77% cut in EPS estimates over 30 days. The company trades at a forward P/E of 18.07 versus the industry average of 15.01 and a PEG ratio of 1.69 compared with 2.24 for its peers, with its industry ranking in the bottom 2%.