Home Builder Lennar Slashes Fourth Quarter Outlook

Excerpt from our One-Page WSJ Summary:

Lennar Cuts Profit Outlook, Reports 39% Decline in Net

Summary: Increases in cancellations, incentives, and price discounts were blamed for homebuilder Lennar's (LEN) announcement that it is lowering its fiscal fourth quarter outlook. Some statistics from the company's quarter: net income was down 39% last quarter from $337.3 ($2.06 per share) in Q3 last year to $206.7 million ($1.30 per share). Q4 earnings are projected to be $1-$1.30 per share, and the full year outlook dropped from $8-8.25 to $5.88-6.18 per share. With orders falling only 5%, Lennar did outperform competitors which announced order losses of 20-50%.
Related links: Full WSJ article • Seeking Alpha's Housing Bubble and Real Estate Market Tracker • Contrarians Moving Into Housing Stocks
Potentially impacted stocks and ETFs: Lennar Corporation (LEN). Other Homebuilder Stocks: Beazer Homes (BZH), Centex Corp (CTX), KB Home (KBH), Toll Brothers (TOL). ETF: streetTRACKS SPDR Homebuilders ETF (XHB)

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