Earnings Preview: KB Home

KB Home (KBH) is expected to report Q4 earnings before market open Friday, January 9, with a conference call scheduled for 11:30 am ET.

Guidance

Analysts are looking for EPS of ($1.19) on revenue of $792.78M. The consensus range is wide for both EPS and revenue, with analysts expecting from ($3.70) to (20c) for EPS, and revenue from $682.53M to $956.6M, according to First Call. In KB Home's Q3 earnings conference call in September, CEO Jeffrey T. Mezger stated he believed it was too early to asses whether government interventions would be effective. Mezger also stated that market fundamentals are unlikely to "significantly" improve near-term, and that KB Home is well positioned to weather prolonged downturn.

Analyst Views

On December 24, UBS lowered KB Home estimates due to continued deteriorating conditions. The firm also lowered its target to $15 from $19, but maintained its Neutral rating for the company's shares.

Comments

[Guero:]

KBH has a high cash balance & low land position. They will weather this better than most other builders.

Jan 09 10:46 AM