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What: Shares of homebuilder KB Home
So what: The Street was expecting a loss when KB reported quarterly results, but it wasn't supposed to be nearly this bad. Net loss rose to $68.5 million, or $0.89 per share, up from $0.40 per share a year ago and topping estimates of a $0.31 loss.
Now what: Some of that can be blamed on a $20.6 million charge to write down land value the company thought it was buying cheaply. I guess the housing market isn't anywhere near a recovery based on these results, and things may still be getting worse. I would stay away from homebuilder shares because I think losses will keep piling up as the housing market stagnates over the next few years.
Interested in more info on KB Home? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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