Lennar Corporation (NYSE:LEN) shares are trading lower Friday after the company reported worse-than-expected third quarter financial results on Thursday.

What To Know: Lennar reported adjusted earnings per share of $2.00, missing the consensus estimate of $2.10. In addition, the company reported sales of $8.81 billion, missing the consensus estimate of $8.99 billion.

New orders increased 12% to 23,004 homes, while the company delivered 21,584 homes, in line with the prior year. Backlog stood at 16,953 homes with a value of $6.6 billion.

The average sales price of homes delivered fell to $383,000 from $422,000 last year. Gross margin on home sales declined to 17.5% from 22.5%. Selling, general and administrative expenses rose to 8.2% of revenues from 6.7% a year ago.

For the fourth quarter, Lennar expects new orders of 20,000 to 21,000 homes, deliveries of 22,000 to 23,000 homes and a gross margin of about 17.5%.

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LEN Price Action: At the time of writing, Lennar shares are trading 3.88% lower at $127.71, according to data from Benzinga Pro.

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