Categories Analysis, Other Industries

KB Home (KBH) Q4 Earnings Preview: Homebuilder to ride on positive macros

After a lackluster third quarter, KB Homes (NYSE: KBH) is set to end the fiscal year on a positive note as the housing sector continues to thrive on favorable market conditions and strong economy. The homebuilder is scheduled to report its fourth-quarter results on Thursday at 4:15 pm ET.

Also see: KB Home Q3 2019 Earnings Conference Call Transcript

Analysts are looking for earnings of $1.28 per share for the quarter, up 33% from last year. Revenues are seen rising 19.2% annually to $1.61 billion. A corresponding growth can be expected in financial services revenues in the to-be-reported quarter.

KB Home (KBH) reports mixed results for Q3 2019; stock reached new 52-week high today

Strong Economy

The forecast reflects the positive trend in the housing market, aided by the current uptick in the economy. So, the chances of KB Home’s earnings once again beating the estimates are very high – as they did in the previous quarters. On the revenue front, it could be a trend-reversal this time, after missing the estimates in the previous three quarters.

The market’s bullish earnings outlook for the long term makes the stock attractive, which is moderately priced despite the recent rally. It shows the stock has room for further growth next year and beyond, which also justifies the consensus hold rating on it with a price target that represents a 7% upside.

Tailwinds

The Federal Reserve’s dovish stance has made mortgage loans more affordable. That, combined with the steady uptrend in the job market and people’s spending power, bodes well for the housing industry. Consumer confidence has been at a historic high, and new home-buyers are encouraged to take the plunge. However, the persistent supply constraints might have played spoilsport in the final months of the fiscal year, rendering the company unable to fulfill the demand.

Related: Lennar’s Q3 results beat expectations

As far as meeting the delivery targets is concerned, the solid order growth and high backlog levels might put the company under pressure. It needs to be seen to what extent the cost-cutting efforts would be effective in maintaining margin growth. The management is looking for double-digit margin growth both sequentially and on a year-over-year basis.

Looking Back

In the third quarter, earnings decreased 16% from last year to $0.73 per share on revenues of $1.16 billion, which represents a 5% year-over-year decline. While the bottom-line surpassed the estimates, sales missed.

Shares of KB Home climbed to a two-year high a few months ago but pared a part of the gains in the following weeks. The stock has gained 65% in the past twelve months, outperforming the market.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

HPE Earnings: Hewlett Packard Q1 2024 profit drops but beats Street view

Information technology solutions provider Hewlett Packard Enterprise (NYSE: HPE) on Thursday reported lower earnings and revenues for the first quarter of 2024. Earnings, however, exceeded analysts’ forecasts. First-quarter profit, excluding

After entering FY24 on a high note, Costco is all set to report Q2 results

Costco Wholesale Corporation (NASDAQ: COST) stands out in the retail space for its unique business model that enables the warehouse behemoth to grow store traffic and market share constantly. Currently,

Hormel (HRL) expects continued momentum from its foodservice business in FY2024

Shares of Hormel Foods Corporation (NYSE: HRL) soared over 13% on Thursday after the company delivered better-than-expected earnings results for the first quarter of 2024 and reaffirmed its outlook for

Comments

  1. Pingback: madridbet giriş
  2. Pingback: 2working
  3. Pingback: grandpashabet
  4. Pingback: türk porno seks
  5. Pingback: fuck google
  6. Pingback: madridbet
  7. Pingback: meritking
  8. Pingback: madridbet
  9. Pingback: meritking giriş
  10. Pingback: grandpashabet
  11. Pingback: Grandpashabet
  12. Pingback: meritking
  13. Pingback: meritking
  14. Pingback: izmir escort
  15. Pingback: grandpashabet
  16. Pingback: fuck porn
  17. Pingback: child porn
  18. Pingback: child porn
  19. Pingback: xxlargeseodigi
  20. Pingback: porn
  21. Pingback: child porn
  22. Pingback: porn
  23. Pingback: child porn
  24. Pingback: porn
  25. Pingback: porn
  26. Pingback: porn
  27. Pingback: porn
  28. Pingback: sex
  29. Pingback: izmir travesti
  30. Pingback: ığdır escort
  31. Pingback: hd porno izle
  32. Pingback: istanbul travesti
  33. Pingback: porn
  34. Pingback: kralbet
  35. Pingback: yasam ayavefe

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top