Lennar Corp. (LEN-NYSE) reports earnings on Tuesday. The company is expected to post a sharp drop-off after the company had already withdrawn guidance. FirstCall has estimates at $0.05 EPS on very wide range with many expecting losses or gains; and the last revenue expectations seen were $2.575 Billion.
Unfortunately we have no real guidance out of the company and the sector itself is in disarray. Finding a bull for the group right now would be difficult, and if you found him he’d probably answer to the name Dr. Pangloss. About the only good news right now is that a contrarian can make a fortune IF he is right, and there has been so much negative news in the sector that any news that isn’t ghastly could get a "Less Bad Equals Good" reaction.
Shares of Lennar closed down 2.5% at $38.75 today and shares closed out 2006 at $52.11. The SPDR Homebuilders ETF (XHB) closed down 1.89% and the iShares Homebuilders (ITB) closed down 1.8%.
Jon C. Ogg
June 25, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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