In line with recent quarters, investors will be looking for signs that two years of turnaround efforts brought about cash flow improvements and steep debt reduction. Yet, the quarter was soft for most companies, the poll showed.

Sales slowed in the quarter and cancellations kept dogging most builders, which are now delivering the bulk of projects launched a few years ago into a markedly weaker and more indebted economy. Economic growth is expected to slow to just 2.13 percent in 2014, according to a weekly central bank survey.

Still, building costs are largely under control, and some firms such as Cyrela Brazil Realty SA (>> Cyrela Brazil Realty SA Empreend Part) have engineered a successful turnaround.

Launches of new housing projects declined about 10 percent in the third quarter on an annual basis, according to Citigroup Inc. calculations, which helped drive sales down about 12 percent. Going forward, the industry's major worry will be rising sales cancellations, which could lead to oversupply, price declines and cash flow woes, Deutsche Bank Securities analysts added.

"Sales deceleration reflects a combination of a weaker economy and self-inflicted issues for specific companies, such as exposure to oversupplied markets, low quality of inventory and peaking deliveries," Citigroup analysts led by Paola Mello wrote in a note.

PDG Realty SA (>> PDG Realty SA Empreend e Participacoes), which focuses mostly on affordable housing, has sharply scaled back new launches in an effort to reduce its net debt, which currently stands at about 140 percent of equity, among the highest in the sector.

Analysts expect cancellations to drag on PDG's bottom line in the third quarter, with six analysts predicting an average loss of 65.8 million reais ($29.38 million), and one forecasting net income of 33.5 million reais.

Sales cancellations also drove Brookfield Incorporacoes SA (>> Brookfield Incorporacoes SA), which has had more difficulty than its peers in controlling costs, to a third quarter loss, the poll found. The company is expected to lose 16.8 million reais in the period, according to the average estimate of three analysts, while one analyst forecast a 4 million reais profit.

Analysts were split on the outlook for Gafisa SA (>> Gafisa SA), which sold off 70 percent of its Alphaville unit in June. The deal, expected to close in the fourth quarter, will help reduce a heavy debt burden but leaves the company more concentrated in the middle and low-income segments via its Gafisa and Tenda brands, respectively.

Three of the six analysts surveyed for Gafisa predicted third-quarter profit of 35.4 million reais, on average, while the other half expect a loss of 6 million reais.

Analysts were more optimistic about low-income homebuilder MRV Engenharia SA (>> MRV Engenharia e Participacoes SA), which unlike Gafisa, PDG and Brookfield, has relatively low debt levels. The company probably earned 133 million reais in the quarter, down 12.1 percent on an annual basis, according to the poll, with margins expected to increase on the back of higher selling prices and a reduction of inventory.

Most analysts stopped short of recommending MRV's stock, however, as a more than 40 percent gain in the shares since the end of June could be overdone.

While Brazil's homebuilding sector as a whole is expected to present weak third-quarter earnings, there is one exception.

Cyrela, Brazil's largest homebuilder, is expected to far outshine its peers, likely earning 187 million reais in the quarter, up over 24 percent from a year earlier, according to the average estimate of seven analysts.

The company's efforts to reduce expenses have contributed to improving margins and increased return on equity, and strong cash generation has helped make it one of the least-indebted firms in the industry.

"Cyrela's turnaround story is well underway," wrote Esteban Polidura, an analyst with Deutsche Bank. "The company's more manageable size and low leverage should allow operations to remain on a profitable path for quarters to come."

Cyrela, Brookfield and Gafisa all report earnings after market close on November 13, while MRV reports November 11. PDG reports after market close on Tuesday.

($1 = 2.24 Brazilian reais)

(Reporting by Asher Levine; Editing by Guillermo Parra-Bernal and Krista Hughes)

By Asher Levine