Lennar Corporation (NYSE:LEN) could offer insight into the housing market when the company reports fourth-quarter financial results Tuesday after market close.
Here are the earnings estimates and the key items to watch.
Earnings Estimates
Analysts expect Lennar to report fourth-quarter revenue of $9.02 billion. That’s down from $9.95 billion in last year's fourth quarter, according to data from Benzinga Pro.
The homebuilder company has beaten analyst revenue estimates in eight of the last 10 quarters, but missed estimates in the most recent third quarter.
Analysts expect Lennar to report fourth-quarter earnings per share of $2.21, down from $4.03 in last year's fourth quarter.
The company has missed analyst estimates for earnings per share in two straight quarters, while beating estimates in eight of the last 10 quarters overall.
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Key Items to Watch
Lennar's earnings report could provide clues to the health of the housing market. The report finds consumers struggling to afford homes, and mortgage rates are a key factor that many homeowners and potential homeowners are watching as we head into 2026.
The Federal Reserve's recent rate cut decision could be a key topic on the company’s conference call, with analysts seeking color on how lower rates could affect the housing industry.
The earnings report also comes after several analysts have downgraded the stock.
In the month of December, Barclays downgraded Lennar from Equal Weight to Underweight and JPMorgan downgraded the stock from Neutral to Underweight.
While analysts and investors will be closely watching the earnings report and listening to the conference call, legendary investor Warren Buffett, who is the CEO of Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) could also be tuning in.
Buffett increased his bet on Lennar in the second quarter, adding 7,048,993 Class A shares and increasing his position in Lennar Class B shares by 19% to 180,930 shares.
The legendary investor also bought shares of homebuilder DR Horton Inc (NYSE:DHI) in the second quarter, before exiting that position in the third quarter.
Lennar is now Buffett's biggest bet on the homebuilder sector. A strong report could help boost shares of Berkshire Hathaway.
Lennar reported 23,004 new home orders in the third quarter, which was up 12% year-over-year. The company's backlog was 16,953 homes valued at $6.6 billion at the end of the third quarter. Along with revenue and earnings per share, these are among the key figures investors will be watching.
The company reported a lower average selling price for homes sold in the third quarter. Lennar management noted it needed additional incentives to sell homes amid housing market pressure.
More commentary like that could put pressure on margins and the stock moving forward.
LEN Price Action: Lennar shares trade at $119.31 on Monday versus a 52-week trading range of $98.42 to $156.76. Lennar stock is down 5.5% year-to-date in 2025.
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