BOSTON -- Shares of Ryland Group Inc. were down 3% Wednesday morning ahead of the builder's second-quarter earnings report, which is expected to cross after the closing bell. "While most builders should post a fairly strong income statement this quarter, we believe Ryland will be usefully less robust, particularly on the cost side as gross margins remain quite subdued," wrote Ticonderoga Securities analyst Stephen East in an earnings preview this week. "Last quarter Ryland suffered from order declines and poor absorption rates, two trends that we believe could be virtually impossible to turn around in the second quarter given the tax credit expiration." The SPDR S&P Homebuilders ETF was down more than 1% at last check Wednesday.
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