- KB Home (KBH) looks to add to yesterday's big post-earnings gain, up 1.2% premarket after ISI Group pulls its Sell rating on the stock.
- Addressing the Y/Y decline in unit sales, management (earnings call transcript) talks of a deliberate attempt to move away from lower-margin inland California home sales, and instead focus on the coastal regions. 66% of California revenue came from coastal divisions, "a significant flip" from the historic mix. With just 14 additional units delivered in CA from the previous year, revenue was up by about $50M.
- Another factor behind the decline was the delay in the openings of 7 communities, allowing just one month of sales prior to the end of the quarter. Business is brisk though, says management, with pricing and margin well above projections.
KB Home looks to add to big gains
Sep 25 2013, 09:23 ET