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Joe Raedle Lennar (NYSE:LEN [https://seekingalpha.com/symbol/LEN]) stock gained 2.8% in Monday after-hours trading after the homebuilder turned in mixed fiscal Q2 results, with earnings missing consensus and revenue topping the average analyst estimate. The outlook for Q3 was also uneven. The company expects fiscal Q3 deliveries [https://seekingalpha.com/pr/20138209-lennar-reports-second-quarter-2025-results]of 22,000-23,000 homes (vs.Visible Alpha consensus of 23,314), and new orders of 22,000-23,000 (vs. the Visible Alpha estimate of 22,543). Average sales price is expected to be $380K-$385K, lower than the Visible Alpha consensus of $398.4K.
Gross margin is expected to remain at ~18%, depending on market conditions. "We continue to focus on consistent volume and pace as we drive efficiencies through every part of our platform in order to realize improved margin even as market conditions soften," said Executive Chairman and co-CEO Stuart Miller. Q2 EPS, excluding mark-to-market losses on technology investments, was $1.90, compared with the average analyst estimate of $1.94, and down from $3.38 in the year-ago quarter. Revenue for the quarter ended May 31, 2025, was $8.38B, topping the $8.19B consensus and down from $8.77B a year ago. "Reflecting softer market conditions, our average sales price, net of incentives, declined to $389,000," Miller said.
"As mortgage interest rates remained higher and consumer confidence continued to weaken, we drove volume with starts while incentivizing sales to enable affordability and help consumers to purchase homes." Corporate general and administrative expenses of $155.9M declined from $157.0M in Q2 2024. Q2 deliveries of 20,131 homes, vs. Lennar's guidance of 19,500-20,500, rose 2% from the year-ago quarter. Average sales price of $389K, vs. the Visible Alpha estimate of $394.8K, fell from $426K a year ago.
New orders of 22,601 grew 6% from Q2 2024. Conference call [https://investors.lennar.com/]on June 17, 2025, at 11:00 AM ET. MORE ON LENNAR * Lennar: Low Expectations For A Seasonally Strong Quarter [https://seekingalpha.com/article/4793690-lennar-low-expectations-for-a-seasonally-strong-quarter] * Lennar: Resilience Built In Its Balance Sheet, But Extreme Caution Warranted [https://seekingalpha.com/article/4790820-lennar-stock-strong-balance-sheet-but-extreme-caution-warranted] * Lennar: Declining Sun Belt Affordability Will Impact Margins And Demand [https://seekingalpha.com/article/4779051-lennar-declining-sun-belt-affordability-will-impact-margins-and-demand] * Lennar Non-GAAP EPS of $1.90 misses by $0.04, revenue of $8.38B beats by $190M [https://seekingalpha.com/news/4458655-lennar-non-gaap-eps-of-1_90-misses-by-0_04-revenue-of-8_38b-beats-by-190m]
Lennar Q2 earnings miss, earnings beat; issues solid guidance for Q3 new orders
June 17, 2025 09:33 AM AEST | By EODHD
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