Homebuilder Lennar Reports Quarterly Earnings

Homes under construction at the Lennar Bridgeway home development (Justin Sullivan/Getty Images)

Down with the homies

Lennar erases 2024 gains as high rates hamstring US housing

The challenges facing Lennar and other homebuilders shed light on a large vulnerability for the US economic outlook.

12/19/24 11:18AM

Shares of homebuilder Lennar Corp. are down more than 5% in early trading after the company issued underwhelming quarterly results and had a relatively dour outlook on what awaits in the near term.

Their estimated deliveries in Q1? Below Wall Street’s projection. New orders? Also disappointing.

And margins on home sales — something we’ve flagged as a critical difference between the outlook for US homebuilders compared to the rest of the stock market — are expected to sink to their lowest level since the second quarter of 2018.

Selling fewer units than expected as profitability deteriorates is not a recipe for success. Accordingly, shares of Lennar have erased its 2024 gains with Thursday’s big decline.

“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, co-CEO. “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’s business challenges are also indicative of one of the most visible vulnerabilities facing the US economy at large should high interest rates continue to hamstring the housing market.

Housing starts are not trending higher. Total units under construction are trending lower amid a wave of multifamily completions. Employment in residential construction has held up very well amid these softening trends, but may be hard-pressed to do so in a world where would-be homebuyers face “affordability limitations” and homebuilders have weakening margins.

D-Wave Quantum CEO on what’s next after the most eventful month in the company’s history

“If 2025 was the international year of quantum, 2026 is the international year of D-Wave Quantum,” said CEO Dr. Alan Baratz.

Luke Kawa9m

Matt Phillips1h

SoFi bests Wall Street’s Q4 expectations, shares rise

SoFi Technologies reported better-than-expected Q4 sales and earnings-per-share numbers Friday before market open, sending the shares higher in the premarket.

The online lender reported:

Adjusted Q4 earnings per share of $0.13 vs. the $0.12 consensus estimate collected by FactSet.
Adjusted revenue of $1.01 billion in Q4 vs. the Wall Street forecast for $977.4 million.
Q1 2026 adjusted net revenue guidance of approximately $1.04 billion vs. the $1.04 billion consensus expectation, according to FactSet.

SoFi shares rallied roughly 70% last year, as the company’s growing menu of financial products — including trading, wealth management, mortgages, credit cards, and cryptocurrency trading — showed signs of gaining traction beyond its traditional base of student borrowers. But the stock has stumbled in early 2026, falling nearly 7% in January through Thursday’s close, though most of that slump seems to have been reversed this morning.

Matt Phillips2h

Exxon Mobil beats Q4 earnings bogeys, despite softer chemical results

Exxon slid in early trading Friday despite reporting better-than-expected Q4 numbers.

The largest US energy company by revenue reported:

Q4 revenue of $82.31 billion vs. analysts’ $80.63 billion consensus expectation, per FactSet.
Adjusted earnings per share of $1.71 vs. the $1.70 analysts predicted, according to FactSet.
Global production of 4.99 million oil-equivalent barrels per day vs. a 4.84 million expectation on Wall Street.

Analysts at RBC Capital spotlighted weaker margins in its chemical division, which is one factor that could be weighing on sentiment. Writing about the division’s earnings, they noted:

“Chemicals products results were particularly weak (-$11m vs consensus +$271m). Notably, this is the first negative result for XOM’s chemicals product division since 4Q19, and highlights the severity of the chemicals downturn the industry is facing.”

Low oil prices have dogged sales and profits at oil giants like Exxon over the last year.

But the recent surge in tensions between the US and oil-rich nations like Venezuela and Iran have contributed to rising oil prices in early 2026, with benchmark US crude oil up roughly 12% since the start of the year.

This morning’s immediate reaction might just be traders taking some of the air out of the stock — Exxon was up 17% for the year through Thursday’s close, compared to a 1.8% gain for the S&P 500.

Claire Yubin Oh3h

Deckers soars on record revenue thanks to Hoka and Ugg demand

Deckers had a lot to celebrate over the holiday period, with the footwear company’s shares up more than 14% as of 6:45 a.m. ET on Friday, after the Hoka and Ugg maker posted record revenue for the quarter ended December 31, 2025. The company notched:

Record revenue of $1.96 billion, ahead of the $1.87 billion forecast by analysts (Bloomberg consensus).
Adjusted earnings per share of $3.33, a whopping 21% higher than the $2.76 predicted by analysts.

Looking ahead, the company also hiked its guidance for the fiscal year ending March 31, 2026, to $5.4 billion to $5.425 billion, up from the $5.35 billion expected in the quarter before.

Deckers’ record revenue and EPS figures were “driven by the significant global demand for UGG and HOKA,” CEO Stefano Caroti said in a press release. Both brands saw “high levels of full-price selling” that resulted in a strong gross margin of 59.8%. Between the two brands, winter favorite Ugg maintained the upper hand with $1.3 billion in revenue, but Hoka saw a whopping 18.5% sales uptick (versus Ugg’s 5%) to $629 million last quarter.

Deckers also shared that the company has now repurchased stock worth $813.5 million in the last nine months, and that it expects its share repurchases to exceed $1 billion for the fiscal year ending March 31, 2026.

Luke Kawa4h

TechCreate keeps going parabolic and the company doesn’t know why

Singapore-based payment software company TechCreate mooned on Thursday, rising 889% and prompting management to issue a statement that “it is not aware of any material nonpublic information that has not been publicly disclosed that would account for the recent trading activity.”

This no-news momentum is continuing: shares are up more than 100% in premarket trading on Friday, as of 5:30 a.m. ET. All told, some $280 million changed hands in the stock in US trading yesterday, roughly 24x its average volume from the previous 20 sessions.

As of mid-January, roughly one-quarter of the stock’s float was sold short, per data from Bloomberg, and that float makes up only about 15% of shares outstanding.

Can’t say I remember the last time I’ve seen a $150 million market cap company turn into a $3 billion market cap company in under 24 hours.