KB Home Shares Plunge after Q1 Results (KBH)
Shares of KB Home (NYSE: KBH) fell sharply on Friday after the Los Angeles, California-based homebuilder reported its first-quarter financial results.
KB Home shares fell to an intra-day low of $9.55 on Friday before finishing the day 8.45% lower at $10.29 on above average volume of 33.25 million.
For the first quarter ended February 29, 2012, KB Home reported revenue of $254.6 million, representing an increase of 29% over the same period in the previous year. The year-over-over increase in revenue reflects higher deliveries and a rise in average selling price. KBH’s home deliveries rose 21% in the quarter, while its average selling price rose 6%.
KB Home reported a pre-tax loss of $45.4 million for the quarter, compared with a pre-tax loss of $114.1 million reported for the same period in the previous year. The company’s net loss for the quarter was $45.8 million, or $0.59 per diluted share, compared with $114.5 million, or $114.5 million, or $1.49 per share reported for the same period in the previous year.
Net orders for the quarter fell 8% to 1,197. At the end of the quarter, the company had a backlog of 2,203 homes.
Jeffrey Mezger, President and CEO of KB Home, said that reflecting the improving trends in the economy, including recent job growth and higher consumer confidence, KB Home is seeing signs that the overall housing market is stabilizing and beginning to recover. Mezger said that the pace of the recovery is uneven, however, with certain local markets showing greater strength and more normalized activity than other areas where a rebound will take longer to manifest. Mezger expects the housing market in general to strengthen gradually as the economy continues to advance.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |