Lennar Corp ( LEN ) shares are sinking in Wednesday’s after-hours session after the company reported worse-than-expected financial results for the fourth quarter. Here’s a look at the key metrics from the quarter.

Q4 Revenue: $9.95 billion, versus estimates of $10.08 billion

Q4 Adjusted EPS: $4.03, versus estimates of $4.16

Lennar ( LEN ) said deliveries decreased 7% year-over-year to 22,206 homes. New orders in the period declined 3% to 16,895 homes, below the low end of the company’s previous guidance of 19,000 homes. The homebuilder had a backlog of 11,633 homes with an estimated value of $5.4 billion at quarter’s end.

Lennar ( LEN ) reported homebuilding operating earnings of $1.5 billion, financial services operating earnings of $154 million and a multifamily operating loss of approximately $200,000. The company ended the quarter with homebuilding cash and cash equivalents of $4.7 billion, and total liquidity of approximately $7.6 billion.

“In the course of our fourth quarter, the housing market that appeared to be improving as the Fed cut short-term interest rates, proved to be far more challenging as mortgage rates rose almost 100 basis points through the quarter,” said Stuart Miller, executive chairman and co-CEO of Lennar ( LEN ).

“Even while demand remained strong, and the chronic supply shortage continued to drive the market, our results were driven by affordability limitations from higher interest rates.”

Lennar ( LEN ) said it repurchased $521 million of its common stock during the quarter.

What’s Next: Lennar ( LEN ) expects first-quarter deliveries of 17,000 to 17,500 homes. The company also guided for full-year 2025 deliveries of 86,000 to 88,000 homes. Lennar ( LEN ) expects first-quarter gross margin to be between 19% and 19.25%, down from 22.1% in the fourth quarter.

“At this time, we will not guide to full-year gross margin until we have a better sense of market conditions as the year unfolds,” Miller said.

LEN Price Action: Lennar ( LEN ) shares were down 7.49% after hours, trading at $135 at the time of publication Wednesday, per Benzinga Pro.

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