Latest Homebuilder Quarterly Results [Housing Tracker]

Homebuilder Stocks 

NVR Ekes Out a Profit In Deep Housing Slump. “NVR reported that profit slid 43% in Q2 and orders for new homes fell… NVR still posted a profit of $51.3 million ($8.64/share), a contrast with many homebuilders, which have been reporting major losses this year. NVR (NVR) earned $90.7M ($14.14) in Q2’07. Revenue dropped 27% to $955.7M… NVR operates in 11 states and sells most of its homes in the Washington region, which has not been as battered by the housing crisis as places where other home builders have been active, such as California and Florida. NVR said new-home orders in Q2 declined 29%, to 2,670, and new-home cancellations rose.” (Washington Post, July 23^rd)

Pulte Loss Narrows to $158.4 Million. “Pulte Homes (PHM) reported a Q2’08 net loss of $158.4 million (-$0.63)/share, compared with a $507.6M net loss for Q2’07, primarily due to $220.1M of pre-tax charges [on] land and inventory... Q2’07’s write down [was] $749.4M. Q2 results also included a tax benefit of $56.8M... Revenues from homebuilding settlements decreased 18% to $1.6 billion as closings fell 8% to5,438 homes and an the average selling price fell 11% decrease to $286,000. Net new home orders fell 32% to 5,133 homes with a value of $1.4B, a 42% decline. Backlog as [end] Q2’08 was valued at $2.4B (8,254 homes), [vs.] $5.2B (14,928 homes) at the end of Q2’07.”  (Big Builder Online, July 23^rd)

Ryland Group 2Q Loss Widens On Charges. “Ryland Group (RYL) reported a Q2 net loss of $241.6 million, or $5.70/share, compared with a loss of $52.4M, or $1.25/share, a year earlier. The company took pretax charges of $134.6M for inventory and other valuation adjustments, $35.9M for joint-venture impairments, and $9.9M for option deposits and feasibility write-offs. Revenue fell 34% to $487.9M. Analysts' [forecasted] a loss of $0.79/share on revenue of $ 493M. Gross margin narrowed to 12.5%... The average home price fell 13% to $254,000. New orders dropped 19% to 2,045, and closings slid 27% to 1,828. Inventory of unsold homes fell 17% from Dec. 31 to 680 units on June 30. Ryland’s financial services segment suffered a 24% decline in the number of mortgages originated and a 14% decrease in average loan size.”  (Dow Jones via CNN Money, July 23^rd)

 

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Comments

[AmesTiedeman]

If you are not building any houses then your loss will decline. No materials to buy or wages to pay. You will only lose money on your existing inventory of unsold homes.