It's Showtime for KB Home

Seth Jayson, The Motley Fool
Updated

KB Home (NYS: KBH) is expected to report Q2 earnings on June 29. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict KB Home's revenues will increase 8.7% and EPS will remain in the red.

The average estimate for revenue is $295.4 million. On the bottom line, the average EPS estimate is -$0.33.


Revenue details
 Last quarter, KB Home recorded revenue of $254.6 million. GAAP reported sales were 29% higher than the prior-year quarter's $196.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at -$0.48. GAAP EPS were -$0.59 for Q1 compared to -$1.49 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 13.0%, 70 basis points worse than the prior-year quarter. Operating margin was -8.9%, 260 basis points better than the prior-year quarter. Net margin was -18.0%, 4,020 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.47 billion. The average EPS estimate is -$0.94.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 569 members out of 1,231 rating the stock outperform, and 662 members rating it underperform. Among 350 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 give KB Home a green thumbs-up, and 218 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KB Home is hold, with an average price target of $9.72.

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The article It's Showtime for KB Home originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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