Ticonderoga EPS Preview on KB Home (KBH): Orders, Revenues, Costs, Inspirada - Expect a Mixed Bag
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Price: $55.44 -1.11%
Rating Summary:
4 Buy, 24 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
4 Buy, 24 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Ticonderoga maintains a 'Buy' on KB Home (NYSE: KBH) and�$16 price target.
Ticonderoga analyst says, "KBH has not announced an earnings release date yet, but we expect the company to report over the next week or two. More important, the release should provide data points for both bulls and bears, as KBH faces tough comparisons and a lower backlog, likely offset by more aggressive cost cuts. Adding more uncertainty to this seasonally weak quarter, the Inspirada JV saga will likely be front and center during the Q&A segment of the conference call. Unfortunately, we believe investors will be less than satisfied understanding potential outcomes of the Inspirada situation."
"EPS before charges should be a loss of $0.14, driven by a low revenue number and high interest expense. Consensus is a loss of $0.27. Consensus likely differs from us due to impairments and SG&A, where we believe investors are underestimating KBH’s resolve and success in pulling out costs...We forecast Orders to be down nearly 5% to 1,826 units...Revenues in this seasonally slow quarter will likely be a paltry $181M...Our Operating Margin forecast is a dismal negative 9.5% but significantly better than last year’s negative 16.1%...KBH is reducing cost in a way we do not believe the Street fully appreciates."
For more ratings news on KB Home click here and for the rating history of KB Home click here.
Shares of KB Home closed at $13.36 yesterday.
Ticonderoga analyst says, "KBH has not announced an earnings release date yet, but we expect the company to report over the next week or two. More important, the release should provide data points for both bulls and bears, as KBH faces tough comparisons and a lower backlog, likely offset by more aggressive cost cuts. Adding more uncertainty to this seasonally weak quarter, the Inspirada JV saga will likely be front and center during the Q&A segment of the conference call. Unfortunately, we believe investors will be less than satisfied understanding potential outcomes of the Inspirada situation."
"EPS before charges should be a loss of $0.14, driven by a low revenue number and high interest expense. Consensus is a loss of $0.27. Consensus likely differs from us due to impairments and SG&A, where we believe investors are underestimating KBH’s resolve and success in pulling out costs...We forecast Orders to be down nearly 5% to 1,826 units...Revenues in this seasonally slow quarter will likely be a paltry $181M...Our Operating Margin forecast is a dismal negative 9.5% but significantly better than last year’s negative 16.1%...KBH is reducing cost in a way we do not believe the Street fully appreciates."
For more ratings news on KB Home click here and for the rating history of KB Home click here.
Shares of KB Home closed at $13.36 yesterday.
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