Latest news with #homebuilding
Yahoo
6 hours ago
- Business
- Yahoo
Lennar and Toll Brothers Shares Are Soaring, What You Need To Know
What Happened? A number of stocks jumped in the afternoon session after peer, D.R. Horton reported strong quarterly results. The positive sentiment lifted the entire homebuilding sector after D.R. Horton, delivered strong third-quarter results that surpassed analyst expectations. This news appeared to overshadow broader concerns about the housing market, which included reports of stubbornly high mortgage rates and a potential slowdown. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Home Builders company Lennar (NYSE:LEN) jumped 8%. Is now the time to buy Lennar? Access our full analysis report here, it's free. Home Builders company Toll Brothers (NYSE:TOL) jumped 7.9%. Is now the time to buy Toll Brothers? Access our full analysis report here, it's free. Zooming In On Lennar (LEN) Lennar's shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 4 months ago when the stock dropped 6.7% on the news that the company reported weak first-quarter 2025 results, with its backlog declining 22% year over year, raising concerns about the strength of its near-term sales pipeline. The more pressing issue, however, was the sharp decline in gross margin, driven by rising land costs and a slight drop in home prices. Also, while sales increased by 5%, supported by a 6% rise in home deliveries, the company had to rely on incentives, such as interest rate buydowns, which involve paying an upfront fee to reduce mortgage rates. This strategy came at a cost, leading to lower operating margins and resulting in a more than 20% year-over-year drop in EPS. Looking ahead, Lennar expects to deliver up to 20,500 homes in the second quarter, with gross margins projected to remain around 18%, reflecting continued pricing pressures. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The market seemed to focus on the negatives. Lennar is down 12% since the beginning of the year, and at $118.19 per share, it is trading 38.6% below its 52-week high of $192.45 from September 2024. Investors who bought $1,000 worth of Lennar's shares 5 years ago would now be looking at an investment worth $1,666. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Reuters
14 hours ago
- Business
- Reuters
D.R. Horton third-quarter results top estimates on incentives push
July 22 (Reuters) - D.R. Horton (DHI.N), opens new tab reported third-quarter profit and revenue above estimates on Tuesday as buyer incentives sustained home sales amid high interest rates and rising costs, sending shares of the homebuilder up 5.7% before the bell. The sector is grappling with weakening consumer sentiment, prompting builders to offer incentives such as mortgage rate buydowns and smaller, more affordable homes to stimulate demand. CEO Paul J. Romanowski noted continued impact on new home demand amid ongoing affordability constraints and cautious consumer sentiment. "We expect our sales incentives to remain elevated and increase further during the fourth quarter, the extent to which will depend on the strength of demand during the remainder of summer, changes in mortgage interest rates and other market conditions," Romanowski said. On an adjusted basis, D.R. Horton earned $3.36 per share in the quarter ended June 30, compared with analysts' average estimate of $2.88 a share, according to data compiled by LSEG. The Arlington, Texas-based company's third-quarter revenue fell 7.4% from a year ago to $9.23 billion, compared with analysts' estimate of $8.76 billion. It narrowed its annual consolidated revenue forecast range to between $33.7 billion and $34.2 billion from its earlier forecast of $33.3 billion to $34.8 billion. Transaction closings from homebuilding operations for the year are expected to be between 85,000 and 85,500 homes, compared with its earlier forecast of 85,000 to 87,000 homes.
Globe and Mail
16 hours ago
- Business
- Globe and Mail
Letters to the editor, July 22: ‘Perhaps we should be thanking Donald Trump for getting our government to say it will clamp down on the dumping of foreign steel in Canada'
Re 'Softwood deal a top priority in trade talks, Carney says' (July 17): I recall statements made in our King's recent speech from the Throne calling for more houses and using more Canadian technology and material. Furthermore, I believe the primary material in most individual homes and multiplexes is lumber and other wood products. A financier as clever as our Prime Minister should be able to initiate a homebuilding program which vigorously supports the Canadian lumber industry. How about a guaranteed quota with guaranteed prices to keep mills open and employees, both in lumber and construction, working? Steven Harker Kingston Re 'Carney cracks down further on cheap steel imports in bid to protect domestic mills' (July 17): Perhaps we should be thanking Donald Trump for getting our government to say it will clamp down on the dumping of foreign steel in Canada. This has been a problem for many years, but it didn't seem to be a concern for prior governments. And perhaps we should also thank Mr. Trump for forcing our governments to crack down on fentanyl. The opioid scourge has been killing and disabling Canadians for years, but their lives didn't seem to be a concern for prior governments. If the U.S. President would demand change about our courts granting repeated bail to accused persons who violate the conditions under which they were released, perhaps there would be less violence on our streets. When I read about such travesties, I wonder why our police officers bother to risk their lives to capture the same offenders over and over again, only to see them released. Ted Crljenica Windsor, Ont. Re 'Defence spending should be leveraged to boost Canada's R&D' (July 17): Our military equipment is obsolescent, if not obsolete. Canada needs a well-equipped, well-trained military with state-of-the-art equipment. However, strong spending on research and development, a heathy economy and an excellent national infrastructure are preconditions for national defence. Our weak R&D spending, along with our inability to translate our world-class innovations into new industries, contributes to our declining standard of living. Economic health is essential to our national security, so devoting 20 per cent of our defence budget to R&D seems reasonable. The exodus of world-class researchers from American universities could, if harnessed, reinvent and create entire industries here. We can also learn much from other countries such as the United States for best practices: The Defense Advanced Research Projects Agency has created entirely new industries; Lockheed Martin's Skunk Works repeatedly undertook state-of-the-art aerospace projects; Stanford University played a critical role in creating of Silicon Valley. John Shepherd Richmond, B.C. Re 'Army removes commanding officer after alleged racist, sexual social-media posts by soldiers' (July 18): Seriously? The Defence Minister thinks the Cameron Highlanders' alleged posting of racist comments and sexual images is 'unacceptable?' And any member participating 'should expect to face administrative and/or disciplinary consequences?' Well, that sure sounds serious. I have a better idea: Boot them out, zero tolerance. Who wants to have people like these, in 'a prestigious reserve unit' playing 'a major role' in Ottawa ceremonial events, representing us anywhere? I sure don't. Let's get real about these types of incidents. Erin Scullion Ottawa Re 'Strength in numbers' (Letters, July 15): A letter-writer asserts that the NDP and Liberals should merge to form a left-leaning bloc to confront the Conservatives in the next election. This would be a bad idea. Firstly the parties have different backgrounds, with the NDP standing for the working class and the Liberals associated with the mainstream middle class. Their ideologies are separate, and combining the two parties would make for an uneasy alliance in which radicals and moderates both vie for power – rather like the modern Conservative Party. The merger would also accelerate the slide toward a two-party system, which would only intensify political polarization and make centrist coalitions, such as those in Denmark and Germany, more unlikely. Let's instead embrace a diversity of parties and adopt a mixed-member proportional system, so we can have a fairer election for once. Iain McInnes Ottawa Re 'U.K. plans to lower voting age to 16 in national elections' (July 18): This has encouraged those campaigning to reduce the voting age in Canada to 16. Before that happens, or at least at the same time, the Youth Criminal Justice Act should lower the maximum age of criminal responsibility to 16. If they are old enough to vote, they are old enough to face consequences in adult courts. Andrew Chong Toronto Re 'Costa Rica is no longer a safe haven for Nicaraguan exiles' (July 18): I was pretty well in agreement with the contributor until the last paragraph about the need for 'regime change' in Nicaragua. That's language right out of the ill-conceived Bush Doctrine, and we all know what happened in post-2003 Iraq. The last thing the United States should be doing, or the Organization of American States for that matter, is trying to destabilize the illiberal government in Managua. Besides, the disastrous U.S.-sponsored 'Contra war' of the 1980s, which led to the vicious deaths of thousands of innocent Nicaraguans, is another reminder of why Washington should stay out of the business of trying to topple Central American governments. Peter McKenna Professor, department of political science, University of Prince Edward Island; Charlottetown Re 'Giller Prize says it will be forced to cease operations without federal funding' (July 17): The Giller Foundation wasn't forced to eject Scotiabank as its sponsor. It seems to have caved in response to some 'holier than thou' folks, and now the Canadian taxpayer is asked to pay the bill instead. As much as I love the arts, I would rather that the bank paid. Leave politics to the politicians. Cassandra King Stratford, Ont. Re 'A North Dakota city is being overrun by ground squirrels and officials are not amused' (July 18): Regarding the nefarious squirrels 'overrunning' Minot, N.D., it seems these squirrels are native to the region. So I suppose they were there for thousands of years until humans came and destroyed their habitat, forcing them to move into town. Who is overrunning whom, I wonder? Glenn Parsons Guelph, Ont. Are ground squirrels tasty? Michael Arkin Toronto Letters to the Editor should be exclusive to The Globe and Mail. Include your name, address and daytime phone number. Keep letters to 150 words or fewer. Letters may be edited for length and clarity. To submit a letter by e-mail, click here: letters@
Yahoo
2 days ago
- Business
- Yahoo
From dream home to lawsuits: Customer says contractor stops communication
DES MOINES, Iowa — Levi Johnson and his wife were excited to build their dream home on their father's property, just adjacent to where they currently live south of Panora. 'We initially decided to go with Davis. We felt like, you know, they were great to work with in and out of the office, all the reviews online seemed to be great,' said Johnson. Little did he know that after construction started in November 2024, things would get more difficult. There were issues arising when Johnson asked the contractor, Davis Custom Homes, to see if there can be fixes to some issues caused by some of the work. Another red flag for Johnson was that mechanical liens were being filed by subcontractors working on the property, which means that the subcontractors weren't being paid out for the work they were doing. Johnson decided to hire a private engineer to observe his house under construction, confirming that there were issues the contractor would need to address. More charges filed against ISU student accused of sexually exploiting minors on social media 'We did present the information from the private engineer, we had a sit down meeting in their office, we did that twice I believe. We were both on a dead head, we were not willing to compromise on that, as well they were not willing to fork up the money needed to fix the issues. I believed that is what stemmed them to reach out to their attorney, was they felt like they didn't need to do anything,' said Johnson. After working through the legal channels, Johnson hit a dead end as Davis Custom Homes legal team would not be hearing any future meetings. Johnson and a group of around 20 homeowners met with the Iowa Attorney General's Office on Wednesday to give the office information regarding each specific situation. WHO 13 News went to Davis Custom Homes property on Wednesday. The property landlord shared that the tenants of the building had paid July's rent, but he had not seen them since Monday, July 6. A contractor was on the scene as well, he told WHO 13 News that he was out $500,000 from his work with Davis Custom Homes. He just got back from vacation on Monday, July 14 and the office was closed and no one was around, and he couldn't get in contact with the owners of Davis Custom Homes. Iowa News: I Scream, You Scream, Roger Riley reports on Iowa Ice Cream PHOTOS: Some central Iowans experienced flooding following weekend showers Another family's dream home turns into 'nightmare' after contractor stops communication One in custody following shooting incident in Fort Dodge One dead after car rolls several times in Des Moines County crash Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Yahoo
3 days ago
- Business
- Yahoo
Editorial: City Council makes fitful, but important progress on Chicago's housing woes
The cost of keeping a roof over your head keeps climbing for both Chicago buyers and renters. City officials say Chicago is short by at least 120,000 units of what it needs to balance supply and demand. There isn't one silver bullet that will make the situation better, and the City Council on Wednesday was faced with two such proposals. One advanced, and the other was delayed. Aldermen approved an ordinance that makes it simpler to waive mandatory parking rules for developments near public transportation, a move that could lower costs and increase housing availability. Some experts say such reforms can boost homebuilding by 40% to 70%. But aldermen deferred a measure to allow so-called granny flats, also known as accessory dwelling units (ADUs), in all 50 wards, postponing a vote. Several years back, the city launched a pilot program in five zones across Chicago to allow for these smaller units, built on the same property as a primary residence. First the good news: Softening parking requirements near transit appears to be a winner. Research from the Sightline Institute, a think tank in the Pacific Northwest, finds that fully flexible parking produces two to three times more new homes than encouraging granny flats or expanding apartment construction near transit. Hopefully, we'll see that kind of result from the council's action Wednesday. We were hopeful to see more movement on granny flats, but we don't believe Wednesday's deferral was the final word. This page has been a consistent supporter of the concept, believing that granny flats, done sensitively, can add to our housing stock without disrupting neighborhoods. To be sure, there hasn't exactly been a stampede of ADU development in parts of the city subject to the pilot program — just over 370 units have been added in four years. Ald. Bennett Lawson, 44th, who has long championed this issue in City Council, said during the hearing that 'we know from the pilot that very rarely do you see two on a block.' That's not a lot. But ADUs are part of a toolkit that needs as many implements as possible to reverse the housing trends that are making it too expensive to live in too many parts of the city. Yet there clearly still is substantial aldermanic resistance. Many aldermen are concerned that this proposal takes away their ability to control how development works in their wards. Ald. Anthony Beale, 9th, called it 'the first step to doing away with zoning in the city of Chicago' during the July 15 zoning meeting. 'You can keep it in your community, not mine,' Beale said. 'To have this done by right without aldermanic approval, I don't know what alderman in their right mind wanna give up that authority. I don't know who would want to do that.' To be sure, Beale isn't just a naysayer — he is clearly a passionate advocate for his constituents. During the meeting, he also told of his fight for tax credits to develop 300 units in a vacant building in his ward. It's obvious that Chicago's housing shortage is being plagued by many issues. We acknowledge the valid concerns of bungalow belt aldermen who are worried about granny flat construction changing the character of their neighborhoods. In some parts of California, residents have complained that ADUs have become 'granny towers' that are taller than the primary structures. Those concerns should be addressed in the ordinance. We think Lawson and others working on the proposal have done a good job of trying to add sensible guardrails, and they should continue to do so. For example, in single‑family districts, building a granny flat would require an administrative adjustment from the zoning administrator, adding oversight without the cost and complexity of a full City Council zoning change. We think it's also worth noting that under the proposed change, these structures couldn't be used for short-term rentals such as Airbnb. Much of the resistance surely stems from Johnson's push at the outset of this debate to legalize development of ADUs by right throughout the city. That overreach — a direct attack on aldermanic prerogative, which City Council members zealously protect — undermined the trust now needed to forge a compromise. But by all appearances, the tone has shifted, and those championing ADUs, including the mayor, are open to negotiating. Housing is a complicated issue, and it's human nature to be protective of your neighborhood. But whether you're Team YIMBY or Team NIMBY, you have to agree that the city must do more to boost our housing stock. In our view, ADU advocates should be open to reasonable conditions, but the city shouldn't give aldermen carte blanche to wholesale bar the construction of granny flats. There's still lots work to be done on housing reform. But aldermen made progress Wednesday. Let's keep it going. Submit a letter, of no more than 400 words, to the editor here or email letters@ Solve the daily Crossword
