KB Home (NYSE: KBH ) reported earnings on March 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 28 (Q1), KB Home beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP loss per share contracted.
Gross margins dropped, operating margins grew, net margins grew.
KB Home booked revenue of $405.2 million. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $351.2 million on the same basis. GAAP reported sales were 59% higher than the prior-year quarter's $254.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.16. The 18 earnings estimates compiled by S&P Capital IQ predicted -$0.22 per share. GAAP EPS were -$0.16 for Q1 compared to -$0.59 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 0.8%, much worse than the prior-year quarter. Operating margin was 0.8%, 970 basis points better than the prior-year quarter. Net margin was -3.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $456.0 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $2.15 billion. The average EPS estimate is $0.18.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 587 members out of 1,257 rating the stock outperform, and 670 members rating it underperform. Among 335 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give KB Home a green thumbs-up, and 169 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KB Home is hold, with an average price target of $17.30.
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