This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Comstock Cuts Forecast Again

Shares of Comstock Homebuilding (CHCI - Get Report) tumbled nearly 10% Tuesday after the company reduced its earnings projection for 2005 and said it would write down some of its inventory in the Raleigh, N.C., market.

The small-cap builder, which mainly constructs new houses and town homes in Washington, D.C., and North Carolina, had already lowered its full-year earnings guidance in early December. The company's latest estimate is for fourth-quarter earnings of 65 cents a share, down from the previous forecast of $1.01 to $1.10. Analysts, on average, predicted earnings per share of $1, according to Thomson First Call.

For 2005, Comstock expects earnings of $2.12 a share, down from its lowered December guidance of $2.50 to $2.60. Analysts were expecting earnings of $2.50 a share.

Comstock shares were down $1.25, or 9.7%, to $11.62 in recent trading. The shares hit a 52-week low of $11.27 earlier in the day. The shares previously were at a 52-week low of $12.37 on Jan. 24, compared with a 52-week high of $31 last Feb. 28.

The Reston, Va., company, which will release its earnings in late February, also reported a 7% drop in net new orders for the fourth quarter, blaming a slowing Washington, D.C., market for the decline.

Comstock said its reduced earnings estimate includes an impairment charge on certain housing inventory in its Raleigh operations. It's not clear if the writedown is for communities open for sale or simply owned land on the company's books. It's also not clear how much the impairment charge contributed to the lowered earnings forecast, since no dollar value was given for the impairment.

The company's management wasn't immediately available for more information.

"The rate of home price appreciation in the Washington, D.C., market during the past few years led to pricing resistance which negatively impacted new order rates in the region in the fourth quarter," Christopher Clemente, the company's CEO, said in a statement.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CHCI $1.73 0.00%
AAPL $94.23 0.63%
GOOG $694.04 -0.60%
FB $117.70 -0.73%
YHOO $35.96 -1.60%


Chart of I:DJI
DOW 17,681.12 -210.04 -1.17%
S&P 500 2,058.72 -22.71 -1.09%
NASDAQ 4,760.0350 -57.5590 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs