NEW YORK - Housing stocks increased Tuesday after luxury homebuilder Toll Brothers Inc. reported its second-quarter loss beat Wall Street's expectations. Early Tuesday, Toll said it lost $93.7 million, or 59 cents per share, in the second quarter, compared with a year-ago profit of $36.7 million, or 22 cents per share. Analysts surveyed by Thomson Financial expected a loss of 89 cents per share. The stock of the Horsham, Pa.-based builder climbed a dollar, or 4.8 percent, to $21.96 in late midday trading. Luxury builder Hovnanian Enterprises Inc. (nyse: HOV - news - people ) added 36 cents, or 4.5 percent, to $8.23. However, Toll said demand remains weak in most markets as jittery buyers keep to the sidelines. Some analysts expect higher charges from the company in coming quarters because it hasn't written off as much as other builders. The current quarter included a hefty $174.6 million charge to write down the value of land joint ventures. Meanwhile, the mortgage lending unit of GMAC LLC (nyse: GJM - news - people ) said Tuesday it needs more than three times more cash to stay in business than it estimated just weeks ago, another signal of the continued disruption in the credit markets. A lack of capital in the secondary market and stricter lending standards have made it more difficult for borrowers to obtain home loans. Shares of Pulte Homes (nyse: PHM - news - people ) Inc. rose 36 cents, or 3 percent, to $12.55, while DR Horton Inc.'s stock increased 50 cents, or 4 percent, to $13.04. Centex Corp. (nyse: CTX - news - people ) gained 57 cents, or 3.1 percent, to $19.11, and KB Home (nyse: KBH - news - people ) shares rose 96 cents, or 4.7 percent, to $21.34.
Wednesday, June 4, 2008
Sector Snap: Homebuilders up after Toll's results - Forbes.com
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