Lennar Stock Sinks as Homebuilder Warns of Weak Housing Market | Global News Avenue

Lennar’s shares (Lun) fell about 3% in listed deals Friday as homebuilders warned of a weak housing market, offsetting more than estimated quarterly results.

Co-chaired executive Stuart Miller said in a press release Thursday that the company was challenging for the company’s “macroeconomic environment” during the first quarter. “Although demand remains strong, continued higher interest rates and inflation, coupled with a sluggish consumer confidence and limited affordable housing supply, it makes it increasingly difficult for consumers to obtain home ownership,” he said.

Miller, overall, as “demand remains limited by affordability, the net price of homes and rents in the overbuilt apartment market have begun to decline.”

Miller says The company offered 17,834 homes in its first fiscal quarter and recorded 18,355 new orders. But “reflecting on the ongoing weakness in the market,” he said, incentives fell 1% year-on-year to $408,000.

Lennar releases first quarter fiscal Earnings per share (EPS) Revenues were $1.96 for $7.63 billion, compared with the visible Alpha estimated at $1.75 and $7.48 billion, respectively.

In the second quarter, Lennar expects new orders to range between 22,500 and 23,500, with an average selling price of between $390,000 and $400,000.

Lennar shares have fallen by a quarter in the past 12 months to Thursday.