Earnings Preview: KB Home

| About: KB Home (KBH)

KB Home (NYSE:KBH) is expected to report Q2 earnings Friday, June 29 before the market open, with a conference call scheduled for 11:30 am EST.

Guidance

Analysts are looking for EPS of (34c) on revenue of $301.3M. The consensus range is wide at (45c)-(19c) for EPS, and $275M-$390M for revenue, according to First Call. The company reported disappointing Q1 results, missing EPS and revenue targets. On its Q1 conference call, the company noted that orders dropped 8% year-over-year and the pace of the housing recovery was "uneven." Management remained "cautious" on the current environment and said it will take "some time" for the housing market to recover. Sentiment on the Street regarding KB Home has been mixed lately, with several upgrades and downgrades in the past three months. The company cut its quarterly dividend to 2.5c from 6.25c per share on April 13, citing the desire to take advantage of growth opportunities. The stock has traded significantly lower since Q1 results were released, moving from around $11 to a recent $8.60 a share. Investors may be waiting for positive news on the economy and the housing sector before making further commitments.