KB Home 4Q Profit Slides 83% On Lower Revenue, Tax Benefit

Date : 01/07/2011 @ 9:09AM
Source : Dow Jones News
Stock : KB Home (KBH)
Quote : 23.3  -0.06 (-0.26%) @ 4:06PM

KB Home 4Q Profit Slides 83% On Lower Revenue, Tax Benefit

KB Home (NYSE:KBH)
Historical Stock Chart

5 Years : From Jul 2012 to Jul 2017

Click Here for more KB Home Charts.

KB Home's (KBH) fourth-quarter profit slid 83%, though results were better than analysts had feared, as revenue fell by one-third and the company recorded a significantly lower tax benefit than a year earlier.

Shares jumped 3.6% premarket to $14.85.

KB has improved its results drastically in recent quarters, like many other builders that benefited from a government tax credit that caused new buyers to look for homes in droves before the credit expired this spring. Since the credit's expiration, builders have seen orders slump--with KB's orders declining 25% from a year earlier to 1,085 units.

President and Chief Executive Jeffrey Mezger on Friday noted that the company has a cautious outlook as housing-market conditions remain difficult.

"While there are indications that the overall economy has started to recover, the lack of improvement in employment and consumer confidence is likely to continue to hinder a sustained housing recovery," he said.

For the quarter ended Nov. 30, KB reported a profit of $17.4 million, or 23 cents a share, down from $100.7 million, or $1.31 a share, a year earlier. The most-recent quarter included a tax benefit of $2 million and $3.2 million of inventory impairment and land-related charges, while the year-earlier quarter included a $191.7 million tax benefit and $77.2 million of inventory and joint-venture impairment and land-related charges.

Revenue dropped 33% to $451 million, hurt by lower housing and land-sale revenue.

Analysts polled by Thomson Reuters had most recently forecast a loss of 17 cents on $441 million in revenue.

Adjusted housing gross margin, which excludes items such as inventory impairment, rose to 19.7% from 19%.

At the quarter's end, backlog was 37% lower than a year earlier at 1,336 homes. Meanwhile, the average selling price rose 14% and the cancellation rate rose to 29% from 17% a year earlier.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com

 
 

Latest KBH Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.