KB Home shares continued to decline Monday after several analysts cut their earnings targets for the troubled homebuilder.
KB dropped 79 cents to $16.93 Monday. The stock fell sharply Friday after the Los Angeles homebuilder reported a quarterly loss on large charges to write down the value of unsold inventory.
Wachovia analyst Carl Reichardt more than doubled his loss estimate for the company in 2008 to $9.10 per share from a previous forecast of $4.50 per share.
"KB's very weak margins appear to be the result of both soft pricing and what we believe is difficulty in controlling indirect and selling costs," he wrote in a note to investors.
JMP Securities analyst James Wilson said he cut his estimates because KB's impairment charges were larger than expected. He nearly doubled his loss estimate in 2008 to $9 from $4.70 per share.
KB took a $176.5 million charge in the latest quarter, which Wilson called "significant," although he noted it was less than a year ago and will likely continue to decline.
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