Lennar (LEN - commentary - Cramer's Take), the nationwide homebuilder, is expected to report Tuesday before the market opens a third-quarter loss of 52 cents a share on revenue of $1.07 billion. In the year-ago quarter, LEN lost $3.25 a share on revenue of $2.34 billion. The quarterly conference call will take place later Tuesday morning.
LEN is the first major homebuilder to report its results after last week's announcement of unprecedented actions taken by the federal government to bail out the mortgage markets. I would expect the LEN CEO, Stuart Miller, to have some commentary on the government program and how it will impact LEN and its peers. I would expect a positive story to be spun by Miller on that subject.
As for LEN, we should expect continued improvement in liquidity and the balance sheet while losses from writedowns will still be realized, albeit at significantly lower levels than the past several quarters. In addition, LEN might confirm what we heard from Toll Brothers (TOL - commentary - Cramer's Take) earlier this month when the company's management indicated that there are signs of improvement in several geographies, and the rate of cancellations is beginning to decline.
P.S. Will you be there when Cramer makes his next move?
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homebuilders Bunk Balance Sheet Leverage Hammers HOV 9/5/2008 11:26 AM EDT The revenue number beat the consensus estimate, but earnings fell far short of expectations.
homebuilders TOL Shows Signs of Improvement 9/5/2008 8:41 AM EDT The luxury homebuilder reported a net loss of 18 cents per share on revenue of $797.7 million.
At the time of publication, Rothbort had no positions in stocks mentioned, although positions can change at any time.
Scott Rothbort has over 20 years of experience in the financial services industry. In 2002, Rothbort founded LakeView Asset Management, LLC, a registered investment advisor based in Millburn, N.J., which offers customized individually managed separate accounts, including proprietary long/short strategies to its high net worth clientele. He also is the founder and manager of the social networking educational Web site TheFinanceProfessor.com.
Immediately prior to that, Rothbort worked at Merrill Lynch for 10 years, where he was instrumental in building the global equity derivative business and managed the global equity swap business from its inception. Rothbort previously held international assignments in Tokyo, Hong Kong and London while working for Morgan Stanley and County NatWest Securities.
Rothbort holds an MBA in finance and international business from the Stern School of Business of New York University and a BS in economics and accounting from the Wharton School of Business of the University of Pennsylvania. He is a Term Professor of Finance and the Chief Market Strategist for the Stillman School of Business of Seton Hall University.
For more information about Scott Rothbort and LakeView Asset Management, LLC, visit the company's Web site at www.lakeviewasset.com. Scott appreciates your feedback; click here to send him an email.
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