Earnings Preview: KB Home

| About: KB Home (KBH)

Company Profile

KB Home operates as a homebuilding and financial services company in the United States.The Company constructs and sells homes through its operating divisions under the name KB Home.

KB Home (NYSE:KBH) is scheduled to report its second quarter earnings results on June 29, 2012, before market open.

Technical Overview

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KB Home has a market cap of $646.87 million and it is currently trading around $8.39 with a 52 week range of $4.93 to $13.08. The stock has risen 24.85% year to date. The following table provides the key financial ratios for KB Home:

Key Ratio Value
Forward P/E 83.9
Profit Margin -8.01%
Return On Assets (ROA) -4.15%
Return On Equity (ROE) -24.23%

Recent News

  • On June 18, 2012, KB Home announced the opening of its first ZeroHouse 2.0 at its Middletown Woods community in Waldorf, Maryland, as well as its plans to offer the net-zero energy home option at all of its Washington, D.C.-area communities.
  • On May 9, 2012, KB Home announced that it has been recognized by the U.S. Environmental Protection Agency (EPA) with a company-record fourteen 2012 ENERGY STAR Leadership in Housing Awards.
  • On April 20, 2012, KB Home released its fifth annual Sustainability Report, available exclusively at www.kbhome.com/sustainability. The latest report highlights both accomplishments and challenges in 2011, in addition to outlining new goals for 2012 and the business and consumer interest considerations that may impact achievement of the goals.
  • On April 12, 2012, KB Home announced that the board of directors of KB Home has declared a quarterly cash dividend of $.025 per share on the Company's common stock, reflecting its decision to reduce the Company's quarterly cash dividend from $.0625 per share. The dividend is payable on May 17 to stockholders of record on May 3, 2012.

Here's a list of recent changes to analyst ratings:

  • On June 8, 2012, Citi issued a NEUTRAL rating on KB Home and lowered the price target from $11.50 to $8.00.
  • On April 16, 2012, Raymond James' Buck Horne upgraded KB Home from UNDER PERFORM to MARKET PERFORM.
  • On April 10, 2012, MKM Partners' Megan Talbott McGrath upgraded KB Home to NEUTRAL and maintained $10 price target.

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $306.76 million when compared to $271.74 million for the same quarter last year. Earnings per share for the second quarter are expected to be loss of 33 cents a share, up from a loss of 89 cents a share in the year-ago period.

The average price target from analyst for KB Home is $9.77 with average rating is HOLD

Out of the last 4 quarters, KB Home has met or exceeded the EPS estimates 2 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for KB Home:


D.R. Horton Inc (NYSE:DHI), NVR Inc (NYSE:NVR), Lennar Corp (NYSE:LEN) and M.D.C. Holdings Inc. (NYSE:MDC) are considered as major competitors for KB Home and the table below provides the key metrics for these companies:

Price $8.39 $16.75 $802.75 $26.91 $29.03
52 Week Price -28.04% 48.78% 11.55% 52.98% 14.29%
Market Capitalization $646.84 $5.3B $4.07b $4.3B $1.4B
Earnings per Share -1.43 0.41 24.68 0.42 -1.64
Total Revenue $1.4B $4.0B $2.8B $3.3B $868.4M
Employees (Full-Time) 1200 3010 2765 4062 854

Sources: Some of the data is taken from Google Finance, Nasdaq, Yahoo Finance, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in KBH over the next 72 hours.