Shares of $Lennar Corp (LEN.US)$ were trading more than 8% lower shortly after 4.33 pm ET Wednesday after the company reported quarterly earnings of $4.03 per share which missed the analyst consensus estimate of $4.16 by 3.12%. This is a 22.05% decrease over earnings of $5.17 per share from the same period last year.
The company reported quarterly sales of $9.95 billion which missed the analyst consensus estimate of $10.08 billion by 1.35%. This is a 9.32% decrease over sales of $10.97 billion the same period last year.
Lennar said its fourth-quarter performance was impacted by rising mortgage rates, which constrained affordability despite strong demand and a persistent housing supply shortage. New orders fell short of expectations, prompting strategic adjustments to sales prices and incentives to boost sales and manage inventory. The company reported $1.1 billion in earnings, delivered 22,206 homes, and maintained a strong balance sheet with $7.6 billion in liquidity, while continuing to focus on a volume-driven, asset-light business model and initiatives to address housing affordability.
"Against this backdrop, we continue to remain focused on our volume-based strategy of driving sales and cash flow while using margin as a shock absorber as we continue to migrate to an asset-light, land-light business model," said Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar.
"This strategy is reflected in both the public filing of a registration statement on Form S-11 for the planned spin-off of Millrose Properties, Inc., as well as our previously announced acquisition of Rausch Coleman Homes as we focus on growing to drive affordability and fill the supply gap that is reflected in the marketplace."
