Shares of homebuilders fell Monday after an analyst said he is concerned about Beazer Homes USA Inc.'s long-term profitability, and home improvement retailer Lowe's Cos. reported quarterly results that reflected the turmoil in the housing market.
JMP Securities analyst James F. Wilson said he expects Beazer Homes to continue recording losses in 2008. He raised his estimate for how much Beazer will lose this year after the Atlanta-based company reported a nearly $230 million loss in the quarter that ended March 31.
Shares of Beazer Homes lost 86 cents, or 9.4 percent, to $8.30 in afternoon trading.
In another sign that the housing market continues to struggle, home improvement retailer Lowe's Cos. Monday reported a nearly 18 percent drop in first-quarter profit and lowered its outlook for the year, citing a slumping housing market and a weaker economy.
And Friday evening, credit rating agency Standard & Poor's cut it rating on Miami-based homebuilder Lennar Corp. to "BB" from "BB+." The company has struggled during the housing downturn, and S&P expects more pressure in key states like Florida and California. Shares of Lennar slipped 67 cents to $19.34.
Elsewhere in the sector shares of D.R. Horton Inc. fell 37 cents to $15.12; Pulte Homes Inc. added 2 cents to $14.74; and Hovnanian Enterprises Inc. climbed 23 cents to $9.22. Shares of Centex Inc. fell 41 cents to $23.08.
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