Lennar Corporation (NYSE:LEN) shares closed more than 3% lower ahead of Q4 results, which will be reported on Dec 15.

Analysts at Wedbush provided their outlook ahead of the earnings results, expecting Q4 EPS of $4.14, compared to $2.82 last year and consensus estimate of $4.15.

Based on the analysts’ field checks and recent earnings reports from the company’s competitors, analysts believe that demand/supply imbalance has not changed which should be bullish for the company and the industry.

On the Q3 call, Lennar guided to double-digit percentage community growth in 2022 versus 2021 and indicated the gross margin headwind from higher lumber prices should roll off by Q2/22. The brokerage said it will look for an update on the community guidance and the gross margin outlook, mentioning that its biggest questions revolve around municipal headwinds on permitting and inspections.