Post-Earnings Coverage - KB Home

LONDON, September 30, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings coverage on KB Home (NYSE: KBH). On September 24, 2014, the company reported its financial results for Q3 FY14 (period ended August 31, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on KB Home. For Q3 FY14, KB Home's total revenues grew 7% Y-o-Y, while the company's diluted EPS decreased by $0.02 from the previous year quarter. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview    

During Q3 FY14, KB Home's total revenues increased to $589.21 million from $548.97 million Q3 FY13, reflecting a twelfth consecutive quarter of Y-o-Y revenue growth. The reported quarter's revenue trailed Bloomberg analysts' expectations of $646.56 million. The revenue growth was driven by increase in the company's housing revenues attributable to higher average selling prices. KB Home's overall average selling price increased on a year-over-year basis for the seventeenth consecutive quarter to $327,000 in Q3 FY14 from $299,100 in Q3 FY13, reflecting an increase of 9.3%. However, the company delivered 1,793 homes in the third quarter, compared to 1,825 homes in the previous year quarter. Deliveries in the reported quarter were tempered by delays in construction schedules and customer mortgage loan closings. The free research on KBH can be downloaded as in PDF format at:

www.Investor-Edge.com/KBHFreeReport

The company's SG&A expenses as a percentage of housing revenues increased to 12.4% in Q3 FY14 from 11.6% in the year ago quarter. Further, KB Home's Homebuilding operating income during Q3 FY14 decreased to $33.91 million from $35.96 million in the preceding year quarter. On the other hand, KB Home's housing gross profit margin for Q3 FY14 improved to 18.8% from 18.2% in the year-earlier quarter. The company's net income for the reported quarter broadened to $28.36 million from $27.28 million Q3 FY13. However, on a per share basis, the company's Q3 FY14 earnings decreased to $0.28 per diluted share from $0.30 in the previous year. The reported quarter's net income fell short of Bloomberg analysts' forecasts of $39.74 million, or $0.40 per diluted share.

Jeffrey Mezger, President and CEO of KB Home, stated that the company's business continues to perform well, reflecting the actions taken by the management to position its operations for success. He added that in a slowly recovering economic and housing market environment, the company is consistently producing profitable results, growing its community count and generating highest backlog value since 2008. KB Home is clearly seeing the impact of strategies that have implemented over the past few years. According to Mr. Mezger, an increasing proportion of the new home communities, that the company has opened recently, are the product of its targeted investments in attractive, land-constrained submarkets. These communities are fuelling measurable expansion in the company's net order value and the potential future housing revenues and profits embedded in its backlog. Sign up and read the free analyst's notes on KBH at:

www.Investor-Edge.com/KBH-30092014

Mr. Mezger further mentioned that during Q3 FY14, there was an appreciable uptick in the company's traffic levels which is an evidence of the pent-up demand for new housing and strong interest in the company's product offerings. Mr. Mezger expressed confidence that the demand will continue to strengthen as consumer confidence, household incomes and mortgage availability improve, creating even greater opportunities to achieve continued success in the company's served markets.

KB Home's CEO added that the company remains committed to capitalizing on its operational platform that is primed to accelerate profitable growth. He informed that the company expects to continue leveraging its solid backlog, strategic land investments, rising community count, and organizational efficiencies to drive sustained earnings growth and long-term value creation for its stockholders. According to Mr. Mezger, the company's progress through the first three quarters of FY14 underscores the underlying strength of the momentum that the company has generated in its business to accomplish its financial and operational goals for 2014 and beyond. Visit Investor-Edge and access the latest research on KBH at:

www.Investor-Edge.com/KBHEarningsCoverage

Stock Performance  

On the day of earnings release, September 24, 2014, KB Home's shares nosedived 5.30%, ending the session at $16.07. However, the stock has moved lower since then, and on the last close, Monday, September 29, 2014; it finished at $15.19, which is 2.38% below its previous day's closing price. The stock vacillated between $15.15 and $15.42 during the last session. A total of 4.77 million shares were traded, which was above its three months average volume of 3.62 million shares. Over the previous three trading sessions and over the last one month, the company's shares have fallen by 5.48% and 14.42%, respectively. Moreover, the stock has lost 16.90% from the beginning of 2014. KB Home's shares are trading below their 50-day and 200-day moving averages of $17.03 and $17.44, respectively. Further, the stock traded at a PE ratio of 13.33 and has a Relative Strength Index (RSI) of 30.30.

Sneak Peek to Corporate Insider Trading 

In the last one month, KB Home has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on KBH is available at:

www.Investor-Edge.com/KBHInsiderTrading

About Investor-Edge.com 

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EDITOR'S NOTES:

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