KB Home: Stay Away For Now
Money Investor • 18 Comments
Money Investor • 18 Comments
Tue, Sep. 20, 5:37 PM
Tue, Sep. 20, 4:28 PM
- FQ3 (ended Aug. 31) deliveries up 11% Y/Y to 2,487 homes, with particular strength in West Coast and Central regions. ASP up 2% to $365.9K.
- Adjusted housing gross profit margin up 10 basis points to 21.2%.
- Homebuilding operating income up 43% to $51.5M; operating margin up 120 basis pints to 6% (excl. inventory-related charges and prior year land sales).
- Ending backlog up 17% to $1.85B
- Net orders up 16% to 2,508; net order value up 20% to $929.6M.
- Earnings call at 5 ET
- Previously: KB Home beats by $0.03, misses on revenue (Sept. 20)
- KBH +6.5% after hours
Tue, Sep. 20, 4:08 PM
Tue, Sep. 20, 12:25 PM
- Lennar (NYSE:LEN) was initially higher following this morning's earnings beat, but has turned lower by 4.3% amid cautious earnings call comments on margins.
- Also at work is today's housing starts report which showed an unexpected sharp decline from July to August, with single-family starts dropping to a 10-month low.
- ITB -1.4%, XHB -0.9%
- Hovnanian (HOV -0.9%), KB Home (KBH -1.4%), Pulte (PHM -3.2%), D.R. Horton (DHI -1.2%), Toll Brothers (TOL -1.4%), Taylor Morrison (TMHC -2.5%), LGI Homes (LGIH -1.3%)
Mon, Sep. 19, 5:35 PM
Mon, Sep. 19, 8:29 AM
- The stock price has gone lower of late, but the news flow is and should remain favorable, says Buckingham Research, upgrading KB Home (NYSE:KBH) to Buy from Neutral.
- KB has slid about 10% since late July, but remains higher by nearly 60% from the February lows.
- The stock's up 2.15% in fairly active premarket action.
Tue, Aug. 23, 10:13 AM
- New home sales flew past expectations in July as they rose 31% on a year-over-year comparison. Sales were higher across all regions of the U.S.
- The median price of a house sold during the month was $294,600. Inventory fell to 4.3 months at the current sales pace.
- June's mark was revised down to 582K from 592K.
- The iShares Dow Jones U.S. Home Construction ETF (NYSEARCA:ITB) is up 1.3% after the development. The S&P Homebuilders ETF (NYSEARCA:XHB) is 1.2% higher.
- Toll Brothers (TOL +2.3%) and KB Home (KBH +2.9%) are notable movers in early trading.
Tue, Jul. 26, 10:16 AM
- June new home sales came in at a seasonally-adjusted annualized rate of 592K, up from May's rate of 572K, and the fastest pace since February 2008.
- Expectations had been for 560K.
- The median price of $306.7K was up 6% Y/Y, and inventory fell to 4.9 months at the current sales pace.
- New home sales in Q2 were up 10% from Q1.
- The ITB popped higher on the news, but has retreated a bit since, now up 0.2% on the session. XHB +0.4%
- Toll Brothers (TOL +0.2%), Hovnanian (HOV +0.8%), Lennar (LEN -0.7%), KB Home (KBH +0.1%), PulteGroup (PHM +0.1%)
Mon, Jul. 18, 10:08 AM
- The team upgrades Toll Brothers (TOL +0.1%) to Buy from Neutral, while cutting KB Home (KBH -1.5%) to Neutral from Buy.
- It could be a valuation call, as the two homebuilders have been headed in opposite directions, with TOL in the red for 2016, and KBH higher by 60%.
- Meanwhile the NAHB reported the tiniest of slides in its builder confidence index, which slipped to 59 from 60.
Thu, Jul. 14, 4:19 PM
Tue, Jun. 21, 4:30 PM
- FQ2 (ended May 31) housing revenue of $807.4M up 33%.
- Deliveries of 2,329 homes up 30%. ASP of $346.7K up 2%.
- Adjusted housing gross profit margin of 20.7% improves 40 basis points.
- Homebuilding operating income of $25.9M up 45%, even with inventory and land option contract impairment charges of $11.7M, more than half of which came from the wind down of the company's D.C.-area operations. Excluding those charges, operating income margin up 170 bps to 4.7%.
- Conference call at 5 ET
- Previously: KB Home beats by $0.03, beats on revenue (June 21)
- KBH +3.5% after hours
Tue, Jun. 21, 4:20 PM
Mon, Jun. 20, 5:35 PM
Fri, Jun. 17, 10:30 AM
- May housing starts at a seasonally-adjusted annualized pace of 1.164M edged lower from April, but were up 9.5% from a year ago (and vs. expected 1.15M). Single-family starts of 764K were slightly higher than April.
- The major averages are modestly lower on the session, but the homebuilders (ITB +1%) are posting strong gains, led by Toll Brothers (TOL +1.6%), Hovnanian (HOV +3.7%), KB Home (KBH +1.8%), Lennar (LEN +1.2%), PulteGroup (PHM +1.4%), Beazer (BZH +4.7%), D.R. Horton (DHI +1.2%).
Tue, Jun. 7, 2:31 PM
- The major averages are up modestly, but the homebuilders (ITB +2.2%) are posting sharp gains, helped by a report Elliot Management has taken a stake in PulteGroup. Pulte is leading the way with a 4.6% advance.
- Toll Brothers (TOL +3%), Hovnanian (HOV +3.9%), KB Home (KBH +3%), Lennar (LEN +3.1%), Taylor Morrison (TMHC +3.8%), D.R. Horton (DHI +2.7%)
Tue, May 24, 10:09 AM
- April new home sales at a seasonally adjusted annualized rate of 619K were a full 16.6% above the upwardly revised March print, and 23.8% higher than year-ago levels. The number also flew past expectations for just a 2% rise to 523K.
- Sales in the Northeast of 55K gained from 36K in March; Midwest of 60K down from 63K; South of 352K vs. 304K; West of 152K vs. 128K.
- Full report
- Tossing this bit of information in with strong FQ2 earnings from Toll Brothers (TOL +6.4%) has the homeowners (ITB +2.7%) surging well ahead of the market averages.
- Hovnanian (HOV +4.9%), KB Home (KBH +3.8%), Beazer (BZH +5.4%), Lennar (LEN +3.2%), Pulte (PHM +3.1%), D.R. Horton (DHI +3.3%)