Home construction company Lennar Corp ( LEN ) released its first-quarter results after Thursday’s closing bell.

The following are the comments from different analysts regarding the company’s performance.

Goldman Sachs analyst Susan Maklari reiterated a Neutral rating on the shares with a price forecast of $141.00.

Lennar ( LEN ) reported adjusted EPS of $2.14 for the first quarter, surpassing both Maklari’s $1.75 estimate and consensus of $1.70.

The outperformance was driven by corporate G&A, adding $0.14 to results, and non-core segments, which contributed $0.12, said the analyst.

However, demand remains weak due to affordability concerns, with a projected 2% YOY mid-point growth in closings for the second quarter.

Lennar ( LEN ) saw a 1% YOY increase in unit orders, surpassing the expected 2% decline, with strong performance in Texas and the Central region.

The company ended the first quarter with a solid balance sheet, featuring a -0.3% homebuilding net debt/cap and $5.3 billion in liquidity.

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Oppenheimer analyst Tyler Batory reiterated a Perform rating on the shares. LEN exceeded EPS expectations for the first quarter, with deliveries and orders above guidance, while average selling price (ASP) and gross margin fell short, the analyst noted.

The outlook for second-quarter shows a similar trend, with deliveries in line with expectations but lower-than-expected gross margin and ASP.

The sequential decline in gross margin (down 70 bps Q?Q) suggests a softer spring selling season and the company’s focus on even flow production. LEN said the quarter was affected by ongoing market weakness and a tough macroeconomic environment.

Despite strong demand, higher interest rates, inflation, decreased consumer confidence, and a limited supply of affordable homes made it challenging for consumers to attain homeownership, pointed the analyst.

KBW analyst Jade J. Rahmani maintained a Market Perform rating on the shares with a price forecast of $141.00.

Lennar’s EPS of $2.14 (excluding items) surpassed KBW’s estimate, driven by lower corporate G&A, financial services, and miscellaneous factors, said the analyst.

Meanwhile, homebuilding results were mixed, with lower gross margin (18.7% vs. 18.9% expected) offsetting better orders and deliveries. The second-quarter EPS guidance of $2.20 is below both KBW’s estimate and consensus, reflecting a lower-than-expected gross margin forecast of 18%.

Management noted challenging affordability (rates, high home prices) and weakening consumer confidence. The analyst expects LEN’s shares to be weak on the lower gross margin.

Price Action: LEN shares traded lower by 3.6% at $115.75 at last check Friday.

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