Originally published at www.seclive.com
Filing in Focus: KB Home 8-K, September 24, 2013
KB Home (NYSE:KBH) announced third quarter financial results for the fiscal year 2013 that exceeded analyst expectations. The homemaker reported its revenues increased 29% while operating earnings more than tripled from a year ago. Despite the good earnings and revenue numbers, new home orders dropped 8.6%, missing analyst predictions of 10% gains. Analysts point out that these kinds of numbers, though indicative of a recovering housing market, points to consumer concerns about rising interest rates and increased home prices. KB aggressively marked up its prices by 22% from a year ago, compared to Lennar, which increased its average selling price 13%. With increased revenue and earnings and decreased home orders, KB executives point out that the company is shifting its focus to more upscale neighborhoods, resulting in more revenue growth despite lower volumes.
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