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Lennar Corporation (LEN), headquartered in Miami, Florida, is a leading homebuilder in the United States. Valued at $35.9 billion by market cap, the company engages in building and selling single-family homes, developing residential land, managing multifamily rental properties, and providing residential mortgage, title, insurance, and closing services. The leading homebuilder is expected to announce its fiscal first-quarter earnings for 2025 on Wednesday, Mar. 12.
Ahead of the event, analysts expect LEN to report a profit of $1.76 per share on a diluted basis, down 31.5% from $2.57 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the current year, analysts expect LEN to report EPS of $12.52, down 9.7% from $13.86 in fiscal 2024. However, its EPS is expected to rise 24.2% year over year to $15.55 in fiscal 2026.
LEN stock has underperformed the S&P 500’s ($SPX) 24.1% gains over the past 52 weeks, with shares down 8.3% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 34.9% gains over the same time frame.
LEN's underperformance stems from affordability issues, escalating mortgage rates, and inflation, which have dampened demand, particularly among move-up buyers. Additionally, supply shortages, rising construction expenses, and regulatory uncertainties have also pressured its margins.
On Dec. 18, LEN shares closed down more than 3% after reporting its Q4 results. Its adjusted EPS of $4.03 surpassed Wall Street expectations of $4.16. The company’s revenue was $10 billion, missing Wall Street forecasts of $10.2 billion.
Analysts’ consensus opinion on LEN stock is moderately Bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 13 give a “Hold.” LEN’s average analyst price target is $160.77, indicating a potential upside of 18.2% from the current levels.
