Lennar stock falls after home builder misses home-delivery guidance on supply-chain snags

Shares of Lennar Corp. LEN, -2.94% dropped more than 3% in the extended session Monday after the home builder said its third-quarter earnings were hurt by “unprecedented supply-chain challenges” that are likely to continue “into the foreseeable future.” Lennar said it earned $1.4 billion, or $4.52 a share, in the quarter, compared with $666.4 million, or $2.12 a share, in the year-ago period. Revenue rose to $6.9 billion from $5.9 billion a year ago. FactSet consensus called for EPS of $3.26 on revenue of $7.1 billion. Lennar said that as a result of the supply-chain snags, its third-quarter deliveries of 15,199 homes were about 600 homes below the low end of its guidance. The company also adjusted its fourth-quarter delivery guidance to about 18,000 homes, “reflecting this supply-chain constraint,” it said. Despite that miss, Lennar said demand for new homes remains “strong” and outstrips “limited supply.” The builder ended the quarter with $2.6 billion in cash. Shares of Lennar ended the regular trading day down 2.9%.