KB Home Third Quarter Earnings Sneak Peek

KB Home (NYSE:KBH) will unveil its latest earnings on Friday, September 23, 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 a loss of 17 cents per share, a wider loss from the year earlier quarter net loss of 2 cents. During the past three months, the average estimate has moved down from a loss of 2 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at a loss of 17 cents during the last month.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by 24 cents as a result of reporting net loss of 56 cents against an estimate of a loss of 32 cents per share. In the first quarter, the company fell short of forecasts by 63 cents.

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Wall St. Revenue Expectations: On average, analysts predict $380.8 million in revenue this quarter, a decline of 24% from the year ago quarter. Analysts are forecasting total revenue of $1.27 billion for the year, a decline of 20.1% from last year’s revenue of $1.59 billion.

Analyst Ratings: Analysts seem relatively indifferent about KB Home with nine of 16 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has fallen for the past three quarters. In second quarter, revenue declined 27.4% to $271.7 million while the figure fell 25.4% in first quarter from the year earlier 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 June 23, 2011 to September 19, 2011, the stock price had fallen $5.67 (-48.2%) from $11.76 to $6.09. The stock price saw one of its best stretches over the last year between June 15, 2011 and June 23, 2011 when shares rose for seven-straight days, rising 8.3% (+90 cents) 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% (-$1.43) over that span. Shares are down $7.17 (-54.1%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.