), one of the leading homebuilding companies in the U.S., is set to
unveil its second quarter 2012 results on June 29, 2012, before the
start of trading. The Zacks Consensus Estimate for the second
quarter is loss of 36 cents (estimated year-over-year increase of
60.0%) on revenues of $300 million (year-over-year increase of
First Quarter 2012 Recap
KB Home reported adjusted net loss per share (excluding inventory
impairment charges) of 51 cents in the first quarter of fiscal
2012, wider than the adjusted loss (excluding inventory and
impairment charges and a loss on loan guarantee) of 47 cents per
share in the year-ago quarter.
Lukewarm revenues and gross margins led to the wider loss in the
quarter. The loss was far more than the Zacks Consensus Estimate of
23 cents per share.
Total revenue increased 29% year over year to $254.6 million,
propelled by housing revenues. However, total revenue was much
below the Zacks Consensus Estimate of $324.0 million as well as the
prior-quarter revenue of $479.9 million due to declining net
Agreement of Estimate Revisions
In the last 7 days, none of the 14 estimates have been revised
either for the second quarter or full year 2012. However, over the
last 30 days, 2 out of 14 estimates have been changed for the
second quarter of 2012. One of the revisions has been made downward
and the other has been made upward.
However, 2 of the 14 estimates for fiscal 2012 have moved in the
downward direction in the last 30 days.
The mortgage financing issues, that significantly hurt the
company's first quarter results, are expected to hurt net orders
and backlog conversions at least for the next 2-3 quarters. This
might have pushed some estimates in the downward direction.
Magnitude of Estimate Revisions
Given the limited estimate revisions, the consensus estimate for
the second quarter of fiscal 2012 has remained static over the last
7 as well as 30 days at a loss of 36 cents. However, the consensus
estimate for fiscal 2012 has declined by a cent to a loss of $1.04
per share during the last 30 days but has been static for the past
KB Home has surpassed the estimates in two of the last four
quarters while missing it in the first quarter of 2012 and second
quarter of 2011. On an average, the surprise was a 55.92% in the
trailing four quarters.
KB HOME (KBH): Free Stock Analysis Report
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We currently have a Neutral recommendation on KB Home. The stock
carries a Zacks #3 Rank (a short-term Hold rating).