Home builder KB Home (NYSE: KBH) was not expected to post a profit in its fourth quarter — and it didn’t. The company reported a fourth-quarter EPS loss of -$0.59, more than twice as bad as the consensus estimate for an EPS loss of -$0.24. Revenue was up 29% from the same period a year ago at $254.6 million, but analysts were looking for revenue of $337.7 million.
The worse news for the builder is that orders are down -8% from 1,302 a year ago to 1,197. The company said gross orders were up, but that the cancellation rate rose from 29% to 36% year-over-year. The order backlog is up to 2,203 new homes valued at $460.3 million.
The company did not have anything new to add to the housing recovery story:
Reflecting the improving trends in the economy, including recent job growth and higher consumer confidence, we are seeing signs that the overall housing market is stabilizing and beginning to recover. The pace of the recovery is uneven, however, with certain local markets showing greater strength and more normalized activity than other areas where a rebound will take longer to manifest. We expect that the housing market in general will gradually strengthen as the economy continues to advance.
KB Home’s shares are down about -15% in the pre-market, at $9.57 in a 52-week range of $5.02-$13.60.
Paul Ausick
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
