Lennar Shares Tumble as Homebuilder Profitability Weakens

Lennar Corp. shares slid the most in 19 months after the homebuilder reported increased incentives and narrowing margins, adding to concern that the industry is facing reduced profitability.

The Miami-based company, after reporting an almost 50 percent increase in fiscal fourth-quarter profit, said on a conference call Thursday that profit margins are being hurt by a reduced ability to raise prices. The shares sank 7.2 percent to $42.48 in New York, the biggest decline since June 2013. The Standard & Poor’s Supercomposite Homebuilding Index tumbled 6 percent.