Lennar's (LEN) fiscal Q1 earnings could be below consensus estimates as mortgage rate volatility likely had a negative impact, Wedbush said in an earnings preview Monday.

In the company's earnings release set for Thursday, Wedbush analysts expect earnings of $1.70 per share, compared with the consensus estimate of $1.75. This estimate does not take into account the recent spinoff of Lennar's land assets into a real estate investment trust called Millrose, the analysts noted.

The analysts said they expected a year-over-year decline in the company's orders of 2%, which in line with consensus. The brokerage will also looking for insight during the earnings call Friday on the trends mentioned by Lennar's competitors of low customer traffic and soft demand in December and January, and a rebound in February and March.

Wedbush reiterated its neutral stock rating for Lennar with a price target of $158.

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