Lennar Corporation reported third-quarter profit of $283 million, half the $591 million it earned a year earlier, as high mortgage rates weighed on demand for its homes. Revenue fell 8% annually to $8 billion, while home sales gross margin slipped to 15.8% from 17.5% in the year-ago quarter and new orders dropped 9% annually to 20,879. The results followed the Federal Reserve's September 16th rate hike, which Jim Cramer said would further crush the homebuilding industry, noting Barclays cut its price target on Lennar to 70 from 79 with an Underweight rating. Offsetting the weakness, Lennar's core construction costs fell 6% to $80 per square foot and its cycle time dropped to 116, a new industry low. Hedge fund interest was little changed, with 65 funds holding a stake in Lennar in the second quarter, according to Insider Monkey's data.
Lennar CorporationQ3 profit halved to $283M, revenue fell 8%, gross margin slipped to 15.8%, and new orders dropped 9% amid high mortgage rates.
Toll Brothers Inc
Barclays PLCBarclays cut its price target on Lennar to 70 from 79 with an Underweight rating.
