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Homebuilder Lennar (LEN) stock slips ahead of Friday's market close after issuing weak fiscal second quarter outlook, overshadowing the company's fiscal first quarter earnings and revenue beat.
Market Domination hosts Julie Hyman and Josh Lipton dive into Lennar's latest figures.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Lennar, that stock moving lower after the home builders said buyers needed more sales incentives than usual in the first quarter. That put a dent in the company's margins. Lennar delivered a first quarter beat on both earnings and revenue here, but again, it cost them. And this has been sort of the ongoing situation here. The company's gross margin guide for the second quarter was 18%, which is a drop from the first quarter. And, you know, just that when you have interest mortgage rates that are coming down, but not coming down that much, it still feels like that they're having to buy some buyers here.
Yeah, City, which has a neutral on this one, cited as saying gross Q2 margin guidance points to a tough spring season. They talked about how management continues to use incentives to bridge affordability concerns. Company also saying this was interesting, uh, they talked about reflecting continuing weakness in the market or average sales price net of incentives declined to 408,000. That was 1% lower than last year. Stock now down about 30% over the past 12 months.