Why Lennar Shares Are Falling Today

Lennar Corp LEN is trading lower Thursday morning after the company announced worse-than-expected fiscal fourth-quarter earnings results.

Lennar reported quarterly earnings of $3.91 per share, which came in below the estimate of $4.15 per share. The company reported quarterly revenue of $8.4 billion, which beat the estimate of $8.2 billion, representing an increase of 24% year-over-year.

Lennar said it had 15,539 new home orders during the quarter. The company expects fiscal first quarter new orders to be between 14,800 and 15,100.

"Our record fourth quarter results reflect both continued strength in the housing market across the country, and continued housing supply shortage driven by limited entitled land, labor and supply chain constraints, and 10 years of production shortfall," said Stuart Miller, executive chairman of Lennar.

"While our new orders grew a controlled 2% compared to last year's seasonally strong fourth quarter, we achieved a homebuilding gross margin of 28.0% and homebuilding SG&A of 6.0%, leading to a 22.0% net margin, all of which are all-time Company records," Miller added.

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Lennar is the largest public homebuilder (by revenue) in the United States.

LEN Price Action: Lennar has traded as high as $117.54 and as low as $71.52 over a 52-week period.

The stock was down 5.39% at $107 Thursday morning.

Photo: Pexels from Pixabay.