I mentioned last night that we will need to monitor what Lennar Home Builders (LEN) reports this morning. Well they reported and it was a much worse than expected. The estimates for Lennar were for an EPS of negative $0.55. Lennar came in with a negative $3.25. A huge downward surprise. The company also painted a rather ugly picture of the housing sector in general.
Following the Lennar earnings release, UBS Securities issued a downgrade to ‘sell’ of all homebuilder stocks. I say to UBS: what planet have you been on the past 12 months?
We are seting up for a gap down when the market opens with futures all decidedly lower this morning.
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More on this topic
(What's this?)
Lennar Stock Last Cycle
(Stock Market Prognosticator, 10/1/07)
UBS: Latest Credit Market Casualty
(naked capitalism, 9/30/07)
Homebuilder Debt to Capital Ratio - Be Careful Out There
(Stock Market Prognosticator, 7/16/07)
