KB Home's upcoming earnings
The top homebuilder's results will give investors a glimpse into the health of the housing sector.
KB Home (KBH) will unveil its latest earnings on Friday. The company constructs and sells homes through its operating divisions across the United States. It also operates a homebuilding and financial services business serving home buyers in markets nationwide.
Here is a preview "cheat sheet" for KB Home's earnings:
Wall Street earnings expectations: The average estimate of analysts is for a net loss of 23 cents per share, a narrower loss from the year-earlier quarter net loss of $1.49. During the past three months, the average estimate has moved down from a loss of 22 cents. Between one and three months ago, the average estimate moved up. It has dropped from a loss of 21 cents during the last month.
Past earnings performance: The company is looking to make a three-quarters streak of beating estimates. Last quarter, it beat expectations by reporting profit of 18 cents per share, and the previous quarter, it had a loss of 13 cents.
Wall Street revenue expectations: Analysts predict a rise of 71.5% in revenue from the year-earlier quarter to $337.7 million.
Analyst ratings: Analysts seem relatively indifferent about KB Home, with nine of 16 analysts surveyed maintaining a "hold" rating.
A look back: In the fourth quarter of the last fiscal year, profit fell 20.2% to $13.9 million (18 cents a share) from $17.4 million (23 cents a share) the year earlier, but exceeded analysts' expectations. Revenue rose 6.4% to $479.9 million from $451 million.
Key stats: A year-over-year revenue increase in the fourth quarter of the last fiscal year snapped a streak of three consecutive quarters of revenue declines. Revenue fell 26.7% in the third quarter of the last fiscal year, 27.4% in the second quarter of the last fiscal year and 25.4% in the first quarter of the last fiscal year.
KB Home reported a profit last quarter, snapping a three-month string of losses. The company reported a loss of $9.6 million in the third quarter of the last fiscal year, a loss of $68.5 million in the second of the last fiscal year and a loss of $114.5 million in the first quarter of the last fiscal year.
Stock price performance: Between Dec. 20, 2011, and March 19, 2012, the stock price rose $4.20 (54.6%), from $7.69 to $11.89. The stock saw one of its best stretches over the last year between Nov. 23, and Dec. 2, when shares rose for seven straight days, increasing 18.6% (+$1.24) over that span. It saw one of its worst periods between July 21 and Aug. 2, 2011 when shares fell for nine straight days, dropping 15.1% (-$1.40) over that span.
Derek Hoffman is an editor at Wall St. Cheat Sheet. As of this writing, he did not own a position in any of the aforementioned stocks.
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The company has made at least 4 acquisitions in the space, and few people have paid any attention.
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