The 10-second takeaway
For the quarter ended Nov. 30 (Q4), KB Home beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank significantly.
Gross margins dropped, operating margins grew, net margins dropped.
KB Home reported revenue of $578.2 million. The 16 analysts polled by S&P Capital IQ predicted a top line of $562.6 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $479.9 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 $0.14. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.10 for Q4 were 44% lower than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.6%, 420 basis points worse than the prior-year quarter. Operating margin was 4.2%, 20 basis points better than the prior-year quarter. Net margin was 1.3%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $354.0 million. On the bottom line, the average EPS estimate is -$0.21.
Next year's average estimate for revenue is $1.97 billion. The average EPS estimate is $0.11.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 584 members out of 1,255 rating the stock outperform, and 671 members rating it underperform. Among 355 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give KB Home a green thumbs-up, and 192 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 $14.52.
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