KB Home Fourth Quarter Earnings Sneak Peek

KB Home (NYSE:KBH) will unveil its latest earnings on Wednesday, December 21, 2011. KB Home constructs and sells homes through its operating divisions across the United States under the name KB Home. It operates a homebuilding and financial services business serving homebuyers in markets nationwide.

KB Home Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 4 cents per share, a decline of 80% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 3 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 4 cents during the last month.

Past Earnings Performance: Last quarter, the company topped expectations by 4 cents, coming in at net loss of 13 cents per share versus a mean estimate of a loss of 17 cents per share. This followed two straight quarters of missing estimates.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Wall St. Revenue Expectations: On average, analysts predict $469.6 million in revenue this quarter, a rise of 4.1% from the year ago quarter. Analysts are forecasting total revenue of $1.31 billion for the year, a decline of 17.6% from last year’s revenue of $1.59 billion.

Analyst Ratings: Analysts seem relatively indifferent about KB Home with 11 of 17 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, the company’s loss widened to a loss of a $9.6 million (13 cents a share) from a loss of $1.4 million (2 cents) a year earlier, but beat analyst expectations. Revenue fell 26.7% to $367.3 million from $501 million.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 27.4% in the second quarter from the year earlier, dropped 25.4% in first quarter from the year-ago quarter and 33.1% in the fourth quarter of the last fiscal year.

Competitors to Watch: PulteGroup, Inc. (NYSE:PHM), The Ryland Group, Inc. (NYSE:RYL), Lennar Corporation (NYSE:LEN), D.R. Horton, Inc. (NYSE:DHI), M.D.C. Holdings, Inc. (NYSE:MDC), Toll Brothers, Inc. (NYSE:TOL), Hovnanian Enterprises, Inc. (NYSE:HOV), NVR, Inc. (NYSE:NVR), Standard Pacific Corp. (NYSE:SPF), and California Coastal Communities, Inc. (CALCQ).

Stock Price Performance: During September 21, 2011 to December 15, 2011, the stock price had risen $1.22 (20.2%) from $6.05 to $7.27. The stock price saw one of its best stretches over the last year between November 23, 2011 and December 2, 2011 when shares rose for seven-straight days, rising 18.7% (+$1.25) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine-straight days, falling 15.1% (-$1.41) over that span. Shares are down $5.87 (-44.7%) year to date.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

 

More from The Cheat Sheet