Lennar Corporation has been rated a Zacks Rank #5 (Strong Sell) as the homebuilder confronts the worst housing affordability environment in a generation. In its second quarter, Lennar delivered 20,519 homes and generated revenue of $7.9 billion, short of the roughly $8 billion consensus and down 5.2% year over year, with net margin at just 4.93% and shares falling about 5% on the news. Management cut full-year delivery guidance to 82,000 to 83,000 homes, citing what CFO Diane Bessette described as current pressures on interest rates and continued macro uncertainty, and guided fiscal third-quarter earnings to $1.20 to $1.40 per share on 20,500 to 21,500 deliveries with an average sales price of $375,000 to $380,000 and gross margin near 16%. The Zacks Consensus Estimate sits at $1.30 per share, a 35% plunge versus the year-ago period, while management flagged expected losses of roughly $15 million in Multifamily, $20 million in Lennar Other, and $15 million across homebuilding joint ventures and land sales. Shares recently traded near $78, roughly 44% below their 52-week high, with JPMorgan lowering its objective to $77 with an Underweight rating and Keefe Bruyette maintaining an Underperform rating, and the stock sits in the Zacks Building Products – Home Builders industry group, which ranks in the bottom 21% out of approximately 250 Zacks Ranked Industries.
Lennar CorporationLennar posted Q2 revenue of $7.9B missing consensus, net margin of 4.93%, cut full-year delivery guidance, and was rated Zacks Rank #5 Strong Sell.
JPMorgan Chase & Co