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.