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

Ryland Swings to Expected Loss

Ryland Group (RYL), as expected, reported a large third-quarter loss as falling housing prices across the country forced the homebuilder to record hefty inventory impairment charges.

The Calabasas, Calif.-based builder reported a third-quarter loss of $54.7 million, or $1.30 a share, compared with profit of $87.9 million, or $1.97 a share a year earlier. Analysts expected a per-share loss of 88 cents, according to Thomson Financial.

The losses were primarily caused by $128.1 million of inventory valuation adjustments and write-offs related to land and housing communities under development.

As builders are aggressively cutting prices on homes, they're being forced to mark down the value of land and housing inventory on their balance sheets to reflect that the inventory is no longer profitable.

Ryland's third-quarter revenue fell 35% from a year earlier to $732.3 million. Closings on homes dropped 32%, while new orders tumbled 21%.

Higher marketing and advertising costs also ate into Ryland's profits. Selling, general and administrative expenses as a percentage of homebuilding revenue were 12.3% in the quarter, up from 9.7% a year earlier.

Ryland reported the results after the market closed Wednesday. Pulte Homes (PHM - Get Report) and MDC Holdings (MDC - Get Report) are also expected to report results later Wednesday.

On Tuesday, builder Centex (CTX) reported a $644 million loss because of nearly $1 billion of inventory writedowns.

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
RYL $40.83 0.67%
CTX $25.63 0.00%
MDC $25.17 0.00%
PHM $18.44 0.00%
AAPL $93.64 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs