Tuesday, March 23, 2010 9:03:15 AM
DOW JONES NEWSWIRES
KB Home's (KBH) fiscal first-quarter loss narrowed amid lower write-downs and
Chairman and Chief Executive Jeffrey Mezger said the company expects to return
to profitability "in the latter part of this year."
"Encouraging data in recent months suggest that a number of housing markets
may be stabilizing or starting to rebound, though we do not yet see, in many
respects, a sustained nationwide recovery," Mezger said. "While the pace is
likely to be uneven in the months ahead, we currently expect housing market
conditions to follow a generally positive trajectory throughout this year and
into 2011."
But KB's shares fell 4% premarket to $16.75 as the latest results were worse
than analysts expected. As of Monday's close, shares had risen 34% in the past
year, trailing the broader market.
Like many other home builders, KB has struggled, posting repeated losses amid
a sharp drop in demand during the recession. The housing market has shown
recent signs of stabilization as a host of consumers have taken advantage of an
$8,000 first-time homebuyer tax credit.
For the quarter ended Feb. 28, KB Home reported a loss of $54.7 million, or
71 cents a share, narrower than a year-earlier loss of $58.1 million, or 75
cents. The results included of inventory- and land-related write-downs of $13.4
million and $32.3 million, respectively. Revenue dropped 14% to $264 million.
Analysts polled by Thomson Reuters had most recently forecast a loss of 42
cents on $276 million in revenue.
Housing gross margin rose to 13.7% from 4.9%.
Net orders rose 4.7% to 1,913 while the backlog is 6.4% lower at $523
million. The number of homes delivered fell 8.2% in the latest quarter to
1,326, and average selling price dropped 6.2%. The cancellation rate improved
to 22% from a year-earlier 28%.
Ticonderoga Securities last month labeled KB's stock a buy, saying that
while many builders "sat in suspended animation" as the housing market chilled,
KB "has continually been two steps ahead of the industry in both anticipating
and reacting to the solution." The builder got rid of land early in the
downturn and spotted entry-level opportunity ahead of its peers, Ticonderoga
said.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/nae/al?rnd=rKThPkh6GjGLYs%2Fgo6ieSg%3D%3D. You can
use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
03-23-10 0824ET
Copyright (c) 2010 Dow Jones & Company, Inc.
08:24 032310
Recent KBH News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/10/2024 08:17:57 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/10/2024 04:13:50 PM
- KB Home Announces the Grand Opening of Its Newest Community in Prime Northwest Tucson, Arizona • Business Wire • 05/10/2024 12:00:00 PM
- KB Home Announces the Grand Opening of Two New Communities Situated Within the Highly Desirable Glen Loma Ranch Master Plan in Gilroy, California • Business Wire • 05/10/2024 12:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/08/2024 07:46:31 PM
- KB Home Announces the Grand Opening of Its Newest Community in Desirable Buckeye, Arizona • Business Wire • 05/04/2024 12:16:00 AM
- KB Home Announces the Grand Opening of Its Newest Community in a Desirable Lodi, California Master Plan • Business Wire • 05/03/2024 12:00:00 PM
- KB Home Announces a Rare Opportunity to Own a New Townhome in a Prime Ventura, California Location Walking Distance to Popular Beaches • Business Wire • 04/27/2024 12:00:00 PM
- KB Home Announces the Grand Opening of The Preserve Estates in Justin, Texas • Business Wire • 04/26/2024 12:00:00 PM
- KB Home Announces the Grand Opening of Its Newest Community Within the Highly Desirable Stanford Crossing Master Plan in Lathrop, California • Business Wire • 04/25/2024 08:15:00 PM
- KB Home Announces the Grand Opening of Its Newest Master-Planned Community in Heartland, Texas • Business Wire • 04/23/2024 12:00:00 PM
- KB Home Releases 2023 Sustainability Report • Business Wire • 04/22/2024 12:30:00 PM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- KB Home Announces New $1 Billion Share Repurchase Authorization and Increase in Quarterly Dividend • Business Wire • 04/18/2024 08:10:00 PM
- KB Home Announces the Grand Opening of Its Newest Community in Midland, North Carolina • Business Wire • 04/16/2024 12:00:00 PM
- KB Home Announces the Grand Opening of Its Newest Community in the Highly Desirable Ontario Ranch Master Plan • Business Wire • 04/11/2024 12:00:00 PM
- KB Home Announces the Grand Opening of Its Newest Community in San Antonio, Texas • Business Wire • 04/08/2024 12:00:00 PM
- KB Home Announces the Grand Opening of Its Newest Community in Tucson, Arizona • Business Wire • 04/05/2024 12:00:00 PM
- KB Home Announces the Grand Opening of Its Newest Community in Moreno Valley, California • Business Wire • 04/05/2024 12:00:00 PM
- KB Home Announces the Grand Opening of Its Newest Community in Highly Desirable Antelope, California • Business Wire • 04/05/2024 12:00:00 PM
- KB Home Named to Newsweek’s 2024 List of America’s Most Trustworthy Companies for a Third Consecutive Year • Business Wire • 03/27/2024 08:30:00 PM
- KB Home Announces the Grand Opening of Its Newest Community in Lakeland, Florida • Business Wire • 03/27/2024 12:00:00 PM
- KB Home Earns 14th ENERGY STAR Partner of the Year – Sustained Excellence Award • Business Wire • 03/26/2024 08:10:00 PM
- KB Home Announces the Grand Opening of Its Newest Community in Desirable Santee, California • Business Wire • 03/23/2024 01:13:00 AM
- KB Home Announces the Grand Opening of Contour, its Newest Master-Plannned Community in Chino, California • Business Wire • 03/22/2024 12:00:00 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM