Centex Slashes Guidance

Homebuilder Centex(CTX Quote) guided second-quarter earnings lower as net orders fell 28%.

The Dallas-based company said Thursday it was lowering its estimate for the quarter to 65 cents to 75 cents a share, well below the Thomson First Call consensus estimate of $1.33 a share.

Centex said it expects second-quarter housing operating earnings of about $230 million based on 8,525 home closings. Net sales (orders) for the quarter were 6,828, a decrease of 28% from last year's second quarter. These results reflect current record levels of home sales contract cancellations, driven in many cases by the inability of buyers to sell their existing homes, the company said. ...