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Lennar's (NYSE: LEN) quarterly results may have been short of a disaster, but not by much. The company posted Q3 loss of $3.25 a share vs EPS of $1.30. For the quarter revenue down 44% at $2.3 billion. According to MarketWatch analysts, on average, had been looking for revenue of $2.39 billion, according to estimates compiled by Thomson Financial.
Statements from the company's CEO did not make matters better: "Our response to, and primary focus in, this environment continues to be to adjust pricing to meet current market conditions in order to keep inventories low and to keep our balance sheet positioned for the future. The net effect has been a continued deterioration of our net margin and accordingly, higher impairments to our inventory."
A look at the company's operations by region shows that no part of the country was spared. Home deliveries dropped to 7,636 from 13,038 in the same quarter a year ago. New orders fell by about the same amount.
The news indicates that housing is not even close to a recovery. Lennar's stock is down from a 52-week high of $56.54 to $24.28, and that could go lower.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
9-25-2007 @ 11:21AM
Hoxsie said...
The silver lining to Lennar's report today is that managment is handling the deteriorating market aggressively and appropriately. Also, this is the icing on the cake which effectively signals us that the Federal Reserve will absolutely cut another
.25% sooner rather than later!
9-25-2007 @ 10:07AM
investag8ting said...
They can cut rates to 0% but if people have lost home equity and can't sell their homes for what they owe on it, there will just be more forclosures. Add to that people with no excess cash won't be shopping anymore so it will effect our whole economy, not to mention it's effects on the global economy. American consumers are the most important data for our economy and for many other countries that export to us. The American consumer is tapped out and many are going under, the economies will follow the problem down.
10-03-2007 @ 12:47AM
Ray Lanfear said...
Just received a $50,000 off coupon, in the mail, for Del Webb communities in Las Vegas. Never before has that ever happenned in Real Estate. That shows you prices are going to drop further. Visit 6figureincome.com to help you before you buy or purchase a home. Do not make any offer at the sale price, one should be offering about 30% less the seller is asking and negotiate for further incentives off the sale price. Average price last month in Vegas was down $12,000, what if that continues for several more months. The banks and savings and loan are backed up for many months with foreclosures that have not been announced yet. There should be some good buys on foreclosures in a few months.
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