LandAmerica Financial Group slips after swinging to Q3 loss
LandAmerica Financial Group, Inc. (NYSE: LFG) shares are slipping after the real estate holding company swung to a third-quarter loss of $20.8 million, or $1.28 per share, below analyst estimates of earning $0.62 per share and compared with income of $15.2 million, or $0.89 per share, a year earlier. The Glen Allen, Va.-based company’s results were hurt by a 21% drop in residential mortgage originations compared with the year-ago quarter, two class action lawsuits costing $10 million, lease termination expenses of $7.7 million and a higher claims provision of $5.5 million.
“We are aggressively adjusting our cost structure to align with the weaker revenue environment by reducing headcount, closing offices, and consolidating production centers,” CEO Theodore Chandler, Jr. said in a statement. “On a brighter note, our commercial services operations turned in another strong performance.”
Quarterly revenue declined 8.6% to $906.8 million, below Wall Street projections of $912.1 million and compared with $992 million a year earlier.
After Tuesday’s close, LandAmerica announced that its board approved a dividend of $0.30 per share payable on Dec. 14 to shareholders of record as of Nov. 30.
In morning trading, LFG shares are down 12.41%, or $3.99, at $28.16. Over the last 52 weeks, shares have ranged from $27.50 to $108.92.
