Earnings PerformanceLennar Corporation reported adjusted EPS for FY3Q25 below estimates, driven by softer-than-expected home sales revenue and gross margin.
Market ConditionsLEN pointed to a continued softening of market conditions during 3Q, and as a result, decided to 'ease back' its delivery expectations to help establish a 'floor on margin'.
Valuation ConcernsLEN’s relative valuation is viewed as somewhat expensive, given the outlook for below average gross margins, operating margins and ROE in FY25/FY26.