Core Viewpoint - Lennar Corporation reported third-quarter earnings that fell short of analyst expectations, leading to a 4% decline in share price due to ongoing pressures in the housing market [1] Financial Performance - Adjusted EPS for the quarter was $2.00, missing the consensus estimate of $2.10 [1] - Revenue totaled $8.8 billion, below forecasts of $8.97 billion [1] - Home sales revenue decreased by 9% year-over-year to $8.2 billion, with the average sales price dropping 9% to $383,000 from $422,000 [2] Operational Metrics - The company delivered 21,584 homes during the quarter, nearly unchanged from 21,516 homes a year earlier [2] - Gross margin on home sales fell to 17.5% from 22.5% a year earlier [2] - Selling, General and Administrative (SG&A) expenses increased to 8.2% of home sales, up from 6.7% [2] Future Outlook - For the fourth quarter, Lennar projected deliveries of 22,000 to 23,000 homes with an average price between $380,000 and $390,000 [3] - Gross margins for the fourth quarter are expected to remain around 17.5% [3] - New orders increased by 12% to 23,004 homes, with a backlog of 16,953 homes valued at $6.6 billion [2]

Annice Lyn / Getty Images Shares of Apple climbed as the tech giant’s new iPhone 17 went on sale around the world. Key Takeaways The Dow, S&P 500, and Nasdaq edged higher Friday afternoon, leaving them on track to close the week at new highs. Shares of Apple climbed as the tech giant’s new iPhone 17 went on sale around the world. Lennar shares slid after the homebuilder posted quarterly results that missed analysts' estimates. The Dow, S&P 500, and Nasdaq edged higher Friday afternoon, leaving the ...

Financial Performance - Lennar's Q3 experienced a downturn, with revenue falling short of expectations and deliveries being lower than anticipated [1] - Lennar's home building gross margins decreased to 175%, a significant drop compared to 29% in 2022 [1] Market Conditions and Affordability - The housing cycle has been difficult, with softening market conditions and affordability issues impacting sales volume [1] - Maintaining sales volume required additional incentives to avoid building excess inventory [1] - Lower interest rates this month were encouraging, but production is slowing and delivery guidance is being lowered [2] - Average selling prices declined by 9% [3] - Affordability was stretched, leading to incentives such as buying down mortgage rates and lowering prices [4] Cost Management - Trade partners have been reducing costs to maintain volume, recognizing the impact of reduced home building [2] Industry Outlook - Most big builders are offering incentives due to stretched affordability [4] - Only Toll Brothers, a luxury home builder, expressed optimism about the months ahead at a housing conference [4] - The market is being recalibrated to avoid pushing too hard on a market that doesn't want to be pushed [3]

Core Insights - Lennar Corporation reported disappointing results for Q3 fiscal 2025, with adjusted earnings and total revenues falling short of the Zacks Consensus Estimate, and both metrics declining year-over-year [1][5] Financial Performance - Adjusted EPS was $2.00, missing the consensus estimate of $2.12 by 5.6%, down from $3.90 in the same quarter last year [5] - Total revenues were $8.81 billion, missing the consensus mark of $9.04 billion by 2.5%, and down 6.4% from $9.42 billion year-over-year [5] - Homebuilding segment revenues totaled $8.25 billion, an 8.8% decline from the prior-year quarter, with home sales contributing $8.21 billion, down 8.9% [6] - Home deliveries increased by 0.3% to 21,584 units, but missed projections of 22,730 units [7] - The average sales price (ASP) of homes delivered was $383,000, down 9.2% year-over-year [7] Market Conditions - The housing market faced challenges due to affordability issues and declining consumer confidence, impacting revenue growth [2] - Interest rates remained high for most of the quarter but decreased towards the end, potentially allowing the market to adjust [4] Operational Insights - New orders increased by 12% year-over-year to 23,004 homes, but the potential value of net orders fell to $8.44 billion from $8.56 billion [7][8] - The backlog at the end of Q3 was 16,953 homes, slightly up from 16,944 homes a year ago, but potential housing revenues from backlog decreased to $6.65 billion from $7.75 billion [8] Cost Structure - Gross margin on home sales was 17.5%, down 500 basis points year-over-year, and below the projected 18.2% [8] - SG&A expenses as a percentage of home sales increased to 8.2%, reflecting less leverage due to lower revenues [9] Segment Performance - Financial Services segment revenues grew 15% year-over-year to $314.2 million, with operating earnings increasing to $177.9 million [10] - Lennar Multi-Family segment revenues surged 144.5% to $228.5 million, but reported an operating loss of $16.5 million [10] - Other segment revenues totaled $13.9 million, up from $3.6 million a year ago, with operating earnings of $62.5 million [11] Financial Position - At the end of Q3, Lennar had cash and cash equivalents of $1.41 billion, down from $4.66 billion a year ago, with total homebuilding debt increasing to $3.52 billion [12] - The company repurchased 14 million shares for $1.73 billion during the first nine months of fiscal 2025 [13] Future Guidance - For Q4 fiscal 2025, Lennar expects deliveries between 22,000-23,000 homes, with an ASP range of $380,000-$390,000 [14] - Gross margin on home sales is anticipated to be about 17.5%, with SG&A expenses projected to be in the range of 7.8-8.0% [15]

Core Points - Lennar Corp's shares have decreased by 2.5%, trading at $126.29, following a miss on third-quarter revenue expectations and a disappointing fourth-quarter forecast for home orders [1] - The company is facing challenges due to job market instability and inflated prices [1] Stock Performance - If the stock continues to decline, it will mark its seventh loss in the last nine sessions, currently trading at its lowest level since mid-August [2] - The stock has pulled away from its year-to-date peak of $144.24 on September 5, and currently has a 32.4% year-over-year deficit [2] - Analysts are predominantly bearish, with only four out of 19 brokerages recommending a "strong buy" while the rest suggest a "hold" [2] Options Activity - There has been significant options activity with 23,000 calls and 22,000 puts exchanged, which is 10 times the typical amount [3] - The most popular contract is the September 130 put, indicating new positions are being opened [3]

Core Insights - Lennar's earnings missed estimates, indicating weakness in the housing market [2][3] - The company's stock dropped nearly 6% in early trading but recovered some losses later [2][4] Financial Performance - Lennar reported adjusted earnings per share of $2, with revenue falling over 6% year-over-year to $8.81 billion in its fiscal third quarter [3] - Both earnings and revenue figures fell short of analysts' estimates [3] Market Conditions - CEO Stuart Miller noted that the performance reflects pressures from the current housing market and the company's operating strategy, which includes increased incentives for buyers deterred by high interest rates [3][4] - Despite high mortgage rates during the quarter, there was a decline near the end, and the recent Federal Reserve rate cut is seen as a potential stimulus for demand [4]

Market Overview - The U.S. stock market opened positively on September 19, 2025, extending gains from a record-setting Thursday, driven by strength in the technology sector and key corporate announcements [1][2] - The S&P 500 index rose to 6663 points, marking a 0.47% gain from the previous session, up 4.18% over the past month, and 16.84% higher compared to the same time last year [2] - All three major U.S. indexes reached new all-time closing highs on Thursday, indicating broad market strength beyond large-cap tech stocks [3] Corporate News and Stock Movements - Apple (AAPL) shares gained approximately 1% as the new iPhone 17 models went on sale globally, showing strong consumer demand for Pro models [7] - FedEx (FDX) initially jumped over 5% after reinstating its full-year outlook and reporting better-than-expected first-quarter profit and revenue, but later pared most gains [7] - Lennar (LEN) shares declined by 3% after quarterly revenue and profit fell short of analyst expectations, reflecting challenges in the housing sector [7] - Intel (INTC) shares surged nearly 23% on Thursday but were down 0.6% in premarket trading following Nvidia's $5 billion investment in Intel [11] - Tesla (TSLA) shares surged 22.6% over the past month, indicating strong performance [11] - Darden Restaurants (DRI) dropped 6% as earnings per share missed expectations, despite revenue meeting consensus [11] - Netskope saw its shares end 18% higher in its Nasdaq debut, while StubHub (STUB) stock fell 7% after a challenging debut [11] Economic Events and Indicators - A significant $5 trillion quarterly triple-witching options expiry is scheduled, with expectations of limited market impact [4] - Upcoming economic indicators include Global Purchasing Managers' Index (PMI) figures and the Federal Reserve's core Personal Consumption Expenditures (PCE) price index [6]

FedEx Performance - FedEx reported a quarterly performance that beat expectations, with adjusted earnings of $3.83 per share and revenue exceeding $22 billion [3][4] - The company anticipates a revenue growth of 4% to 6% in 2026, which is higher than Wall Street's expectations of just over 1% [4] - FedEx is facing a projected $1 billion impact from tariffs, but investors are optimistic about the company's resilience despite global trade uncertainties [2][4] FedEx Business Developments - FedEx is planning to spin off its freight business into a new publicly traded company, expected to be completed in about nine months from June of next year [5] - The company has seen a 6% increase in average daily volumes in the U.S. [4] Home Builders Industry - The home builders sector is facing challenges, with LAR reporting a double miss and a decline in revenue of 6% [7][8] - Home builders are experiencing weaker margins, with gross margins dropping from over 20% a year ago to the teens [9] - The housing market is stagnant due to high mortgage rates and economic uncertainty, with expectations for improvement only gradually materializing [10][11] Alphabet Google Performance - Alphabet Google has seen significant stock growth, rising from $83 three years ago to $252 currently [12][13] - Analysts are optimistic about Alphabet Google, with Citizens JMP raising their price target to $290, citing strong performance and AI integration [13][14] - The company is leveraging its established ad business and AI capabilities, with its Gemini app outperforming ChatGPT in downloads [15][16]

Market Overview - U.S. stock futures are stable as investors await a significant phone call between U.S. President Trump and Chinese President Xi Jinping, which may address trade issues and TikTok's U.S. operations [1][5] - Major U.S. indexes reached record highs, driven by optimism in the technology sector and expectations of further monetary policy easing from the Federal Reserve [1][3][6] Premarket Trading Activity - Dow Jones Industrial Average futures are around 46,496 points, showing a slight decrease of 0.04% or about 20 points [2] - S&P 500 and Nasdaq 100 futures are mostly flat to slightly positive, with both up 0.2% [2] - This muted premarket activity indicates a consolidation phase as markets digest recent gains [2] Current Performance of Major Market Indexes - On Thursday, the Dow Jones Industrial Average closed 0.27% higher at 46,142.42, S&P 500 rose 0.48% to 6,631.96, and Nasdaq Composite increased 0.94% to 22,470.72 [3] - The small-cap Russell 2000 surged 2.51% to 2,467.70, marking its first all-time high since November 2021, largely due to a rise in semiconductor stocks, particularly Intel [3] Economic Indicators - U.S. initial jobless claims fell by 33,000 to 231,000, outperforming expectations [4] - The Philadelphia Fed Manufacturing Index rose to +23.2 in September, the highest since January [4] Corporate Earnings Reports - MoneyHero Limited is expected to report a loss of 2 cents per share, with a premarket jump of 10.36% [7] - Other companies reporting include Cantaloupe, IperionX Limited ADR, and Insig AI, among others [7] Major Stock News - Intel shares, after a 22% surge, slipped 0.5% to $30.42 in premarket trading [8] - Nvidia confirmed a $5 billion investment in Intel, which has generated optimism about a strategic partnership [9] - FedEx stock advanced 2.5% in premarket trading after reinstating its full-year outlook and reporting better-than-expected earnings, despite anticipating a $1 billion hit from U.S. tariffs [10] - Lennar shares fell 3% after reporting lower third-quarter profit and revenue forecasts [11] - Apple shares rose 1% as new iPhone 17 models went on sale globally [12] - Oracle shares increased approximately 0.4% as it is reportedly part of a consortium to control TikTok's U.S. operations [12] International Developments - Adani Group stocks are in focus after SEBI dismissed allegations of stock manipulation [13] - Yes Bank completed a strategic acquisition of a 20% stake by Sumitomo Mitsui Banking Corporation [13] - JK Tyre & Industries anticipates double-digit growth due to rising automobile sales [13] - Vedanta emerged as the preferred bidder for a manganese block in Andhra Pradesh [13]

Group 1 - U.S. stock futures are slightly lower, with Dow futures down approximately 0.1% on Friday [1] - Scholastic Corp reported a quarterly loss of $2.52 per share, missing the analyst consensus estimate of a loss of $2.44 per share [1] - Scholastic's quarterly sales were $225.600 million, falling short of the analyst consensus estimate of $238.905 million [1] Group 2 - Scholastic shares declined by 10.3% to $24.70 in pre-market trading [2] - VTEX shares fell 6.7% to $4.33 in pre-market trading [4] - Plug Power Inc experienced a 5.2% drop to $1.99 in pre-market trading after a previous gain [4] - VNET Group, Inc. shares dropped 5% to $9.46 in pre-market trading, despite securing a 40MW wholesale order [4] - Sailpoint Inc shares fell 4.4% to $21.45 in pre-market trading after a prior increase [4] - 1-800-Flowers.Com Inc shares decreased by 3.9% to $5.43 in pre-market trading [4] - Lennar Corp shares fell 2.8% to $129.17 after reporting weaker-than-expected third-quarter results, with adjusted earnings of $2 per share missing the consensus estimate of $2.10 and quarterly revenue of $8.81 billion missing the estimate of $8.99 billion [4]