Shares of Lennar Company (NYSE: LEN) stayed inexperienced on Monday. The inventory has dropped 12% over the previous three months. The homebuilder is scheduled to report its earnings outcomes for the second quarter of 2025 on Monday, June 16, after the market closes. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $8.24 billion for Lennar within the second quarter of 2025. This means a decline of practically 6% from the identical quarter a 12 months in the past. Within the first quarter of 2025, revenues elevated 4% year-over-year to $7.6 billion.
Earnings
Lennar has guided for earnings per share of $1.80-2.00 for Q2 2025. Analysts are predicting EPS of $1.96 for the quarter. This compares to adjusted EPS of $3.38 reported in Q2 2024. In Q1 2025, adjusted EPS decreased 17% YoY to $2.14.
Factors to notice
The housing market is prone to proceed going through headwinds from a difficult macroeconomic setting. As seen over the previous few quarters, whereas there’s sturdy demand for housing, affordability continues to be hindered by inflation and rates of interest. There’s additionally a scarcity in provide of properties because of underproduction. Because of this, customers are reluctant to buy new properties. On the similar time, costs of properties and rents for flats have witnessed a drop.
Homebuilders have been providing varied incentives to assist with affordability and drive residence gross sales. This has put stress on common gross sales value and margins. In Q1, Lennar noticed new orders improve by 1% and residential deliveries improve by 6% whereas common gross sales value dipped 1%. Gross margins on residence gross sales had been 18.7% in comparison with 21.8% final 12 months.
For the second quarter of 2025, Lennar has guided for brand spanking new orders of twenty-two,500-23,500 and deliveries of 19,500-20,500. Common gross sales value is estimated to vary between $390,000-400,000. Gross margin on residence gross sales is anticipated to be approx. 18%.
