Lennar Corporation (NYSE: LEN ) reported fourth-quarter earnings that fell short of analyst expectations, sending shares down 7.8% in after-hours trading.
The homebuilder's outlook for the upcoming quarter also came in below Wall Street forecasts as higher mortgage rates weighed on demand.
Lennar posted adjusted earnings per share of $4.03 for the quarter ended November 30, missing the analyst consensus of $4.20. Revenue came in at $9.95 billion, below estimates of $10.06 billion but up 8% YoY.
The company delivered 22,206 homes in Q4, with an average sales price of $430,000, slightly down from last year.
New orders of 16,895 homes fell short of Lennar's guidance of at least 19,000, as rising interest rates impacted affordability and slowed sales pace.
"In the course of our fourth quarter, the housing market that appeared to be improving as the Fed cut short-term interest rates, proved to be far more challenging as mortgage rates rose almost 100 basis points through the quarter," said Stuart Miller, Executive Chairman and Co-CEO.
For Q1 2025, Lennar expects to deliver between 17,000 and 17,500 homes, with an average sales price of $410,000 to $415,000. The company forecasts gross margin on home sales of 19.0% to 19.25%, down from 22.1% in Q4 2024.
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