The 10-second takeaway
For the quarter ended May 31 (Q2), 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 increased, net margins expanded.
KB Home recorded revenue of $524.4 million. The 15 analysts polled by S&P Capital IQ looked for revenue of $452.4 million on the same basis. GAAP reported sales were 73% higher than the prior-year quarter's $302.9 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 -$0.04. The 17 earnings estimates compiled by S&P Capital IQ forecast -$0.06 per share. GAAP EPS were -$0.04 for Q2 compared to -$0.31 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 2.0%, much worse than the prior-year quarter. Operating margin was 2.0%, 370 basis points better than the prior-year quarter. Net margin was -0.6%, 740 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $588.5 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $2.17 billion. The average EPS estimate is $0.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 584 members out of 1,251 rating the stock outperform, and 667 members rating it underperform. Among 306 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give KB Home a green thumbs-up, and 162 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 $21.03.
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