Homebuilder stocks down across the board Monday
Homebuilding stocks are down once again Monday, after the industry led decliners Friday and a few companies provided less-than-rosy outlooks for next year. Late last week, D.R. Horton (DHI) reported a loss of $8.9 million, or 3 cents a share, for its fiscal fourth quarter ended Sept. 30. The nation's largest homebuilder said fewer write-downs helped narrow the quarterly loss from $234.9 million, or 74 cents a share, a year earlier. The company, which is based in Fort Worth, Texas, said it expects 2011 to be challenging for the industry, as ultimately growth "will be dependent on sales demand." The stock closed down 5.4% Friday and was off more than 4% again Monday. D.R. Horton traded at an all-time high of $41.94 in June 2005. Shares of PulteGroup Inc. (PHM) were off some 5% Monday after finishing last week down 5.5% Friday. The company lost nearly $1 billion for the third quarter ended Sept. 30, reporting a loss of $995.1 million, or $2.63 a share, hurt by impairment charges associated with the merger with Centex that closed in August 2009. For the year-earlier third quarter, Pulte reported a loss of $361.4 million, or $1.15 a share. Chief Executive Richard Dugas Jr. said last week that "market conditions are not expected to improve" and the company plans to further reduce direct construction and overhead costs, as well as shaving another $100 million off selling, general and administrative costs. In late July 2005, Pulte stock was trading at $46.81. Other homebuilder's whose stock price closed down Monday include: Hovnanian Enterprises (HOV); KB Home (KBH); Lennar Corp. (LEN); and Toll Brothers (TOL). The Dow Jones Industrial Average ended Monday up 9.39 points, or less than one-tenth of 1% to 11,201.97. Write to Jason Philyaw. The author held no relevant investments.