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With a market cap of $28.5 billion, Lennar Corporation (LEN) operates as a homebuilder primarily under the Lennar brand in the United States. Founded in 1964, the Miami, Florida-based company operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. LEN is set to report its Q2 earnings on Monday, Jun. 16.
Ahead of the event, analysts expect LEN to report an EPS of $1.98 per share, down 41.4% from a profit of $3.38 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in three of the past four quarters, while missing on one other occasion. Its EPS of $2.14 in the recent quarter surpassed the analyst estimates by 23%.
For fiscal 2025, analysts expect LEN to report an EPS of $10.15, down 26.8% from $13.86 in fiscal 2024. However, in fiscal 2026, its EPS is expected to grow 12.5% year over year to $11.42.
Over the past year, LEN shares declined 30.8%, underperforming the S&P 500 Index’s ($SPX) 8.7% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 10.6% returns over the same time frame.
LEN stock declined marginally following the release of its Q1 earnings on Mar. 20. The company reported a 4.4% year-over-year growth in its total revenue, which came in at $7.6 billion, driven by a 1% increase in its new orders of 18,355 homes. Additionally, the company’s gross margins on home sales came in at 18.7% or $1.4 billion.
The consensus opinion on LEN stock is somewhat optimistic, with an overall “Moderate Buy” rating. Out of the 19 analysts covering the stock, five recommend a “Strong Buy” and 14 recommend a “Hold.” Its mean price target of $133.78 indicates a robust 24.4% upside potential from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
