ConAgra and Lennar fall on earnings results

Jun 28 2008

ConAgra and Lennar fall on earnings results

Posted by: admin in Real Estate and Housing

Filed under: Earnings reports, ConAgra Foods (CAG), Lennar Corp’A’ (LEN), Housing

On Thursday, Omaha-based ConAgra Foods Inc. (NYSE: CAG) reported profit growth in the fourth quarter due in part to contributions from its commodity trading unit, which the company just sold. Also, homebuilder Lennar Corp. (NYSE: LEN) said its fiscal second-quarter loss narrowed, despite writedowns and a hefty drop in revenues.

ConAgra said earnings grew nearly 5% from the year-ago period to $201 million, or 41 cents per share, including 23 cents per share from discontinued operations. The company also stated revenue rose 15% to $3.08 billion.

Analysts surveyed by Thomson Financial had expected earnings for the quarter ended May 25 to be 34 cents per share on revenue of $3.4 billion.

ConAgra guided earnings to between 26 cents and 28 cents per share in the first quarter, and $1.56 and $1.59 per share for fiscal 2009. Analysts are predicting earnings per share of 33 cents per share in the first quarter, as well as $1.60 for the year.

ConAgra shares fell $1.23, or 5.6%, to $20.92 in trading Thursday. Shares have fallen 4.0% in the past three months.

As it continues to struggle through the housing market downturn, Miami-based Lennar posted a 61% drop in revenue to $1.1 billion. And for the three months ended May 31, Lennar reported a net loss of $120.9 million, or 76 cents per share, compared to its loss of $244.2 million, or $1.55 per share, in the same period of the previous a year.

Analysts surveyed by Thomson Financial had predicted a loss of 55 cents per share on revenue of $1.09 billion.

Lennar, one of the largest builders of residential homes in the U.S., said it delivered 3,830 homes in the most current quarter, down 60% from last year. New orders totaled 4,396 homes, a 45% drop. The company also warned of further deterioration in the housing market for the rest of the year.

Shares fell 8.4%, or $1.23, to $13.34 on Thursday. Shares have fallen 23.6% in the past three months.

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