03:20 PM EDT, 06/17/2025 (MT Newswires) -- Lennar ( LEN ) reported fiscal Q2 adjusted EPS that came in below expectations, driven by softer-than-expected home sales revenue and operating margin, UBS Securities said.

The company late Monday reported fiscal Q2 adjusted earnings of $1.90 per share, below the UBS estimate of $1.97.

Home sales revenue of $7.79 billion also came in below the firm's forecast of $7.97 billion. Higher-than-expected selling, general, and administrative expenses contributed to a homebuilding operating margin of 8.9%, missing UBS's projection of 9.8%.

Still, the gross margin of 17.8% matched UBS expectations and remained a key investor focus, the firm said in a note Monday.

Looking ahead, Lennar ( LEN ) guided to fiscal Q3 new orders of 22,000 to 23,000 units, slightly above UBS's estimate of 21,885.

"While somewhat mixed vs [UBS estimate], [Lennar's ( LEN )] FY3Q outlook may be better than feared, particularly as it pertains to gross margin," the firm said.

UBS has a buy rating on the stock with a price target of $164.

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