KB Home Has Smaller Loss in Quarter

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KB Home on Friday reported a smaller third quarter loss as new home orders rose, but the per-share results still failed to meet Wall Street expectations. The company’s stock tumbled Friday.

The Los Angeles home builder reported a loss of $66 million (-87 cents a share) for the quarter ended Aug. 30, compared with a net loss of nearly $145 million (-$1.87) a year ago. Revenue fell 33 percent to less than $459.

Analysts surveyed by Thomson Reuters expected a loss of 58 cents a share on revenue of nearly $458 million.

KB Home said it sold 2,240 homes in the recent quarter, down 20 percent from a year earlier. The average selling price fell 15 percent to $202,800.

Even so, the company pointed to some bright spots, noting that its new home orders were up 62 percent to 2,158, year-over-year growth in every region in which it does business. Its cancellation rate fell to 27 percent, compared with 51 percent a year ago.

“The housing market overall remains in a transition where it will likely be some time before we see meaningful improvement in the economic conditions that are essential to our industry’s future growth,” Chief Executive Jeffrey Mezger said in a statement.

Shares closed down $1.58, or 8.5 percent, to $16.96 on the New York Stock Exchange.

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