With a market capitalization of $23.2 billion, Lennar Corporation (LEN) builds and sells primarily single-family homes while purchasing, developing and selling residential land. It operates through several segments, including residential construction (east, central, south central and west), financial services, multifamily and Lennar Other.
The Miami, Florida-based company is expected to announce its second-quarter 2026 results soon. Prior to this event, analysts forecast that LEN would report adjusted EPS of $1.24, down 34.7% from $1.90 in the prior-year quarter. It has missed Wall Street earnings estimates over the past four quarters.
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For fiscal 2026, analysts predict that the homebuilder will report adjusted EPS of $5.91, a decrease of 26.7% from $8.06 in fiscal 2025. However, EPS is anticipated to grow 29.4% year over year to $7.65 in fiscal 2027.
Lennar shares have fallen 13.9% over the past 52 weeks, lagging the S&P 500 Index ($SPX)’s 30.6% gain and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY)’s 19.6% gain over the period.
Lennar shares rose 2.6% following its first-quarter 2026 results on March 12, as investors were encouraged by signs of margin recovery, with gross margin at 15.2% and forecasts calling for the lowest point, improving to 15.5%-16% in the second quarter. The company also posted strong operating metrics in the first quarter, including net income of $229 million, earnings per share of $0.93, 18,515 homes sold and 2.5x inventory turnover, along with cost reductions such as a 2.5% decrease in construction costs and faster cycle times (up to 122 days).
Additionally, sentiment was boosted by its full-year delivery target of 85,000 homes, strong liquidity with $2.1 billion in cash, and management’s optimistic outlook on cost discipline and technology-driven efficiency.
However, the consensus analyst view on LEN stock is bearish, with an overall rating of “Moderate Sell.” Among the 20 analysts covering the stock, one recommends “Strong Buy”, 11 suggest “Hold”, one recommends “Moderate Sell” and seven indicate “Strong Sell”. As of this writing, the stock is trading above analysts’ average price target of $91.57.
As of the date of publication, Sohini Mondal had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com