KB Home (KBH) Not Likely to Post Blockbuster Q4 Earnings, Says Analyst
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Price: $55.37 +1.67%
Rating Summary:
4 Buy, 24 Hold, 7 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 24 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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KB Home (NYSE: KBH) will release Q4 earnings before the market opens on Thursday, December 20. The Street is looking for EPS of 6 cents on $567 million in revenue. An earnings conference call will be held the same day at 11:30 a.m. EST.
If KB earnings come in weak, it will have a chance to right the ship with enthusiastic comments on its 2013 outlook. If so, in the view of analysts at MKM, KBH management will need to address three main issues - "that community and order growth can accelerate early in 2013", "that KBH can return to profitability in 2013", and "that it has a clear path for addressing near-term cash and balance sheet needs".
Considering recent comment from other homebuilders, MKM is not overly optimistic on this front.
"We remain constructive on KBH’s shares in the medium term, as we believe that the stock can erase some of its valuation discount in the coming year with a re-acceleration of order growth. However, we do not expect that this happened in fiscal 4Q, as KBH still likely suffered from the headwind of declining communities," said analyst Megan McGrath.
MKM Partners has a Buy rating on KB Home (NYSE: KBH) with a price target of $18.00.
For an analyst ratings summary and ratings history on KB Home click here. For more ratings news on KB Home click here.
Shares of KB Home closed at $16.46 yesterday.
If KB earnings come in weak, it will have a chance to right the ship with enthusiastic comments on its 2013 outlook. If so, in the view of analysts at MKM, KBH management will need to address three main issues - "that community and order growth can accelerate early in 2013", "that KBH can return to profitability in 2013", and "that it has a clear path for addressing near-term cash and balance sheet needs".
Considering recent comment from other homebuilders, MKM is not overly optimistic on this front.
"We remain constructive on KBH’s shares in the medium term, as we believe that the stock can erase some of its valuation discount in the coming year with a re-acceleration of order growth. However, we do not expect that this happened in fiscal 4Q, as KBH still likely suffered from the headwind of declining communities," said analyst Megan McGrath.
MKM Partners has a Buy rating on KB Home (NYSE: KBH) with a price target of $18.00.
For an analyst ratings summary and ratings history on KB Home click here. For more ratings news on KB Home click here.
Shares of KB Home closed at $16.46 yesterday.
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