Lennar Q1 Preview: Can The Homebuilder Beat Estimates Amid Macro Jitters? Retail Traders Divided

Lennar Corp (LEN) shares rose about 1% in premarket trading on Thursday ahead of the company’s first-quarter earnings report later in the day.

According to FinChat data, Wall Street expects Lennar to report fiscal first-quarter earnings per share of $1.72 and revenue of $7.44 billion. Lennar’s earnings have topped market expectations in three of the past four quarters.

Earlier this week, BofA trimmed the price target of the stock to $130 from $140, according to The Fly.

BofA had adjusted its model to reflect the impact of the company’s spinoff of land assets through the real estate investment trust Millrose (MRP), which started trading on Feb. 7.

Separately from the spinoff, the firm cut its 2025 EPS forecast by 6% to reflect a more conservative gross margin outlook given subdued demand and elevated incentives ahead of its earnings report.

Earlier in March, Keefe Bruyette downgraded Lennar to ‘Market Perform’ from ‘Outperform.’

The brokerage noted that Lennar's valuation is now near parity to its large-cap peers and there are potential downside risks to estimates.

Keefe expects a "choppy" spring selling season and sees Lennar's gross margin rising due to a challenging macro environment and uncertainty around the spin-off.

It believes a more cautious stance on the shares is warranted and awaits a better entry point, as per The Fly.

Retail sentiment on Stocktwits remained in the ‘neutral’ (51/100) territory, while retail chatter rose to ‘high.’

One retail user said that the market is looking for revenue trends and margin resilience amid shifting housing demand.

Lennar shares have fallen 8.9% year-to-date (YTD).

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