Lennar Stock Plummets Over 2% in 2025 After Q3 Home Delivery Forecast Misses Estimates

Watch This Crucial Price Threshold

Highlights

• Lennar's stock fell more than 2% in after-hours trading after projecting lower-than-expected home deliveries for Q3 2024.
• The company anticipates delivering between 20,500 and 21,000 homes this quarter, slightly below analyst consensus of 20,917 units.
• Despite this, Lennar exceeded expectations in fiscal Q2 earnings and revenue thanks to effective sales incentives.
• Investors should monitor the $150 support level, as a break below could signal a double top pattern and further downside risk.

Lennar (NYSE: LEN), a leading national homebuilder, saw its shares drop sharply in extended trading on Monday after announcing a Q3 home delivery forecast that missed analyst estimates. The company projects home deliveries between 20,500 and 21,000 units, with the midpoint of 20,750 falling short of the 20,917 units expected by Wall Street.

This key indicator suggests ongoing softness in housing demand amid mortgage rates hovering near two-decade highs. Nevertheless, Lennar reported robust Q2 results, posting earnings of $3.45 per share versus the $3.33 consensus and generating $8.77 billion in revenue, a 9% increase year-over-year that beat estimates of $8.48 billion.

New home orders climbed 19% during the quarter, with a backlog of 17,873 homes valued at $8.2 billion. Executive Chairman and Co-CEO Stuart Miller emphasized that despite affordability challenges and cautious consumer sentiment, buyers responded well to increased sales incentives.

Notably, Lennar lowered its average home price to $426,000 this quarter from $449,000 last year to stimulate demand.

Key Technical Level to Watch Post Earnings

Since February, Lennar’s stock has been trading within a defined range, establishing key support and resistance zones. Currently, shares have retreated towards the lower end of this range, trading just below the 50-day moving average, reflecting investor uncertainty.

The $150 mark is critical; it represents potential buying interest at the trading range’s lower boundary. However, a breakdown below this level may confirm a double top pattern formed between April and May, potentially driving the stock down toward support near $133, aligned with July 2023 highs.

On Monday after-hours, Lennar shares closed at $153.10, down 2.2%.

Disclaimer: The views expressed here are for informational purposes on ZAMONA and do not constitute financial advice. Readers should consult professional advisors before making investment decisions.

The author holds no positions in the securities mentioned as of this article's publication date.

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