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Housing Stocks Tumble On Mixed Results From 2 Big Players

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Housing Stocks Tumble On Mixed Results From 2 Big Players
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Homebuilders' shares tumbled Thursday on mixed results from two of the industry's biggest players.

Lennar Corporation (NYSE: LEN) posted stronger-than-expected earnings on in-line revenue Thursday, while earlier KB Home (NYSE: KBH) warned that its margins will narrow.

D.R. Horton, Inc. (NYSE: DHI) fell more than 4 percent Thursday, changing hands recently at $23.95. Horton is slated to post results January 26.

Taylor Morrison Home Corp (NYSE: TMHC) also dropped 4 percent to $17.41, and hasn't scheduled its fourth-quarter earnings release.

M.D.C. Holdings, Inc. (NYSE: MDC) was off more than 5 percent recently at $25.37. M.D.Cl expects to report earnings on January 28.

Ryland Group Inc (NYSE: RYL) tumbled more than 3 percent recently at $37.95. Ryland is slated to post results January 29.

The iShares Dow Jones US Home Const. ETF (NYSE: ITB) declined more than 2 percent, changing hands recently at $25.23.

Thursday's stock meltdown is seen against a backdrop of Commerce Department statistics from last month showing that new home sales dropped 1.6 percent in November to 438,000 units, or nearly 5 percent below analysts' average estimate.

Although builder confidence is down slightly, a trade group recently said it remains in solidly positive territory.

“As we head into 2015, the housing market should continue to recover at a steady, gradual pace,” David Crowe of the National Association of Home Builders said on December 15.

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