Following the release of Lennar Corporation’s end-of-year results on Thursday, the Miami-based homebuilder’s stock took a 7.2 percent dive.
During the company’s 11 a.m. conference call with CEO Stuart Miller, Lennar shares saw their steepest percentage decline in months, according to published reports. More than 16 million shares traded Thursday, compared to the average of 3.5 million, the South Florida Business Journal reported.
However, Lennar reportedly increased its fourth-quarter earnings by about 50 percent. The national homebuilder sold more homes at higher prices last quarter than in the fourth quarter of 2013, bringing in about $245 million compared to $164 million a year earlier, according to a statement.
Reports emphasizing the lower profit margins earned on each sale could be what led to the drop in share price, the South Florida Business Journal reported. And Lennar expects these margins to continue to narrow in 2015 due to increased competition. [South Florida Business Journal] — Katherine Kallergis