The 10-second takeaway
For the quarter ended Feb. 29 (Q1), KB Home whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP loss per share dropped.
Gross margins dropped, operating margins were steady, and net margins grew.
KB Home chalked up revenue of $254.6 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $337.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $196.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.48. The 14 earnings estimates compiled by S&P Capital IQ predicted -$0.23 per share on the same basis. GAAP EPS were -$0.59 for Q1 versus -$1.49 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 -11.5%, 2,520 basis points worse than the prior-year quarter. Operating margin was -11.5%, about the same as the prior-year quarter. Net margin was -18.0%, 4,020 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $363.2 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $1.68 billion. The average EPS estimate is -$0.43.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 572 members rating the stock outperform and 674 members rating it underperform. Among 359 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give KB Home a green thumbs-up, and 230 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 $9.72.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.