American Home Mortgage Lowers Profit Outlook

American Home Mortgage Investment said it expects lower income in the first quarter and full year 2007 than previously forecast due to conditions in the secondary mortgage and mortgage-backed securities markets.

For the first quarter, the mortgage real estate investment trust said it expects earnings of 40 cents to 60 cents a share. For 2007, it sees earnings of $3.75 to $4.25 a share.

Analysts, on average, had expected first-quarter earnings of $1.01 per share, and 2007 earnings of $4.73 per share, according to Reuters Estimates.

During March, the company saw fewer buyers offering materially lower prices for loan pools and mortgage securities, Chief Executive Michael Strauss said in a statement. The company is scheduled to report first-quarter results on April 30.

American Home Mortgage also said it is lowering its dividend to 70 cents a share per quarter, or $2.80 per share on an annualized basis, from $4.48 per share.

Its stock closed Thursday at $25.84 a share on the New York Stock Exchange.