Lennar reports a larger quarterly loss than a year ago

Posted Mar 31st 2009 10:10AM by Mark Fightmaster
Filed under: Earnings Reports, Lennar Corp'A' (LEN), Housing

Homebuilder Lennar (NYSE: LEN) stepped into the earnings spotlight after the session wrapped Monday, with the company reporting a larger loss than a year earlier. The firm realized a first-quarter loss of 98 cents per share compared to a loss of 56 cents per share last year. The latest results did include 35 cents per share related to valuation adjustments and 36 cents for a non-cash deferred tax asset valuation allowance.

LEN CEO Stuart Miller said, "The housing market continued its downtrend right through our fist quarter," thanks to "low consumer confidence, increased unemployment and growing foreclosure rates."

Quarterly revenue fell to $593.1 million from last year's results of $1.06 billion. In addition, 40% fewer homes were delivered and new orders dropped 28%.

Technically, LEN has managed to weather this year's economic difficulties rather well. In fact, the shares were trading in the $22 region when the year started and are currently in the $20 region. It does appear that the stock has found a measure of support at the round-number $20 level -- let's see if it can hold up to today's news.

Should the aforementioned potential support give way, we could see the $16 level step up to act as support like it did earlier in the year. Let's see how the stock and investors react to the earnings news throughout the trading day.

Tags: earnings, earnings report, EarningsReport, homebuilders, housing crisis, HousingCrisis, inthenews, len, Lennar