Lennar Earnings Preview: What to Expect

Valued at a market cap of $29.9 billion, Lennar Corporation (LEN) is a homebuilder headquartered in Miami, Florida. It constructs and sells single-family attached and detached homes across various price points and also provides mortgage financing, title insurance, and closing services, primarily to its homebuyers. It is scheduled to announce its fiscal Q3 earnings for 2025 on Thursday, Sep. 18.

Before this event, analysts project this home construction company to report a profit of $2.14 per share, down 45.1% from $3.90 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in two of the last four quarters, while missing on two other occasions. Its earnings of $1.90 per share in the previous quarter fell short of the consensus estimates by 2.1%. 

For the full year, analysts expect LEN to report EPS of $9.04, down 34.8% from $13.86 per share in fiscal 2024. Nonetheless, its EPS is expected to rebound in fiscal 2026 and grow by 8.9% year-over-year to $9.84. 

LEN has declined 32.7% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 18.3% return and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 24.5% uptick over the same time frame.

Lennar delivered mixed Q2 results on Jun. 16, and its shares plunged 4.5% in the following trading session. The company’s top-line declined 4.4% year-over-year to $8.4 billion, primarily due to a 6.4% decrease in revenues from home sales, fueled by a lower average sales price of homes delivered. Yet, its revenue figure outpaced the consensus estimates by 1.7%. However, on the earnings front, its adjusted EPS of $1.90 fell by a notable 43.8% from the year-ago quarter, missing analyst estimates by 2.1%. This bottom-line miss might have weighed on investor confidence.

Wall Street analysts are moderately optimistic about LEN’s stock, with an overall "Moderate Buy" rating. Among 18 analysts covering the stock, four recommend "Strong Buy," and 14 advise “Hold.” The mean price target for LEN is $121.50, implying a 5.3% premium from the current levels.