Shares of Lennar Corporation (LEN) plummeted 5.54% in Friday's pre-market trading session following the release of disappointing third-quarter results and a weak fourth-quarter outlook. The second-largest U.S. homebuilder by sales volume reported a significant decline in profit and missed revenue expectations, signaling ongoing challenges in the housing market.

Lennar's third-quarter profit fell 46% year-over-year, with earnings per share dropping to $2.29 from $4.26 in the same period last year. The company's revenue declined 8.7% to $8.25 billion, falling short of analysts' expectations of $9 billion. These results reflect the persistent inflationary pressures and high interest rates that continue to dampen housing demand and squeeze profit margins.

Adding to investors' concerns, Lennar provided a fourth-quarter home delivery guidance that fell below Wall Street expectations. The company projects deliveries of 22,000 to 23,000 units, while analysts were anticipating over 25,000 units. This outlook suggests that the challenges in the housing market may persist in the near term, despite the Federal Reserve's recent interest rate cut. The company has been implementing sales incentives, including mortgage rate subsidies and cost adjustments, to stimulate demand, but these measures are pressuring profit margins.