KB Home Third Quarter Earnings Sneak Peek

KB Home (NYSE:KBH) will unveil its latest earnings on Friday, September 21, 2012. 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 loss of 18 cents per share, a wider loss from the year-earlier quarter net loss of 13 cents. During the past three months, the average estimate has moved down from a loss of 9 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 17 cents during the last month.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported a loss of 31 cents per share against a mean estimate of net loss of 36 cents per share. In the first quarter, it missed forecasts by 28 cents.

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A Look Back: In the second quarter, the company’s loss narrowed to a loss of $24.1 million (31 cents a share) from a loss of $68.5 million (89 cents) a year earlier, beating analyst expectations. Revenue rose 11.4% to $302.9 million from $271.7 million.

Stock Price Performance: Between June 21, 2012 and September 17, 2012, the stock price rose $5.01 (63.5%), from $7.89 to $12.90. 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, increasing 18.7% (+$1.25) over that span. It saw one of its worst periods between March 15, 2012 and April 5, 2012 when shares fell for 16 straight days, dropping 36.6% (-$4.78) over that span.

Wall St. Revenue Expectations: On average, analysts predict $430 million in revenue this quarter, a rise of 17.1% from the year-ago quarter. Analysts are forecasting total revenue of $1.56 billion for the year, a rise of 18.2% from last year’s revenue of $1.32 billion.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 6.4% in the fourth quarter of the last fiscal year and 29.3% in the first quarter before climbing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 15 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.0 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 5.23 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.2% to $436.2 million while assets decreased 0.4% to $2.18 billion.

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

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