Lennar Corp Class A (NYSE:LEN) stock rose 2.40% (As on March 13, 11:27:18 AM UTC-4, Source: Google Finance) though the company reported first quarter results that fell short of Wall Street expectations. The homebuilder delivered 16,863 homes during the quarter, down 5% YoY, at an average sales price of $374,000, which represented an 8% decrease from $408,000 in the year-ago period. The company attributed the lower pricing to continued market weakness and increased use of sales incentives, which averaged approximately 14% during the quarter. Gross margin on home sales compressed to 15.2% from 18.7% in the prior year quarter, while selling, general and administrative expenses rose to 9.8% of home sales revenue from 8.5%, resulting in a net margin of 5.3%. Financial Services operating earnings declined to $91 million from $143 million in the prior year period due to lower lock volume and reduced profit per locked loan. The company generated 18,515 new orders during the first quarter, up 1% YoY, and ended with a backlog of 15,588 homes valued at $6.0 billion.

LEN in the first quarter of 2026 has reported the adjusted earnings per share of $0.88, missing the analysts’ estimates for the adjusted earnings per share of $0.95. The company had reported the adjusted revenue decline of 13 percent to $6.6 billion in the first quarter of 2026, missing the analysts’ estimates for revenue of $6.84 billion. Revenues were lower primarily due to an 8% decrease in the average sales price of homes delivered and a 5% decrease in the number of home deliveries. The average sales price of homes delivered was $374,000 in the first quarter of 2026, compared to $408,000 in the first quarter of 2025. The decrease in average sales price of homes delivered in the first quarter of 2026 compared to the same period last year was primarily due to continued weakness in the market and an increased use of sales incentives offered to homebuyers. Operating earnings for the Multifamily segment were $18 million in the first quarter of 2026, compared to a breakeven result in the first quarter of 2025.

For the second quarter, Lennar expects to deliver 20,000 to 21,000 homes with gross margin of 15.5% to 16% and SG&A of 8.9% to 9.1%. The midpoint of the delivery guidance at 20,500 homes suggests sequential improvement as the spring selling season unfolds.