Lennar Shares Slip After Earnings and Revenue Miss

Core Viewpoint - Lennar Corp. reported first-quarter results that fell short of Wall Street expectations, leading to a decline in share price by approximately 1% in premarket trading Financial Performance - Adjusted earnings per share were $0.88, missing the analyst consensus estimate of $0.95 by $0.07 [1] - Revenue totaled $6.6 billion, below the forecast of $6.84 billion and down 13% year over year from $7.6 billion [1] Home Deliveries and Pricing - The company delivered 16,863 homes during the quarter, reflecting a 5% decline compared to the prior year [2] - The average selling price of homes decreased to $374,000 from $408,000 a year earlier, marking an 8% drop [2] Market Conditions and Margins - The decline in pricing was attributed to ongoing market weakness and increased reliance on sales incentives, which averaged about 14% during the quarter [3] - Gross margin on home sales contracted to 15.2% from 18.7% a year earlier, while selling, general and administrative expenses rose to 9.8% of home sales revenue from 8.5% [3] - Net margin was reported at 5.3% [3] Future Outlook - For the second quarter, the company expects to deliver between 20,000 and 21,000 homes, with gross margins projected at 15.5% to 16% and SG&A expenses ranging from 8.9% to 9.1% [4] - The midpoint of the delivery outlook, 20,500 homes, suggests sequential improvement as the spring homebuying season progresses [4] - The company reported 18,515 new orders during the quarter, up 1% year over year, and ended the period with a backlog of 15,588 homes valued at approximately $6.0 billion [4]