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Does The Street Have KB Home Figured Out?

Monday - 3/18/2013, 4:29pm  ET

KB Home is expected to report Q1 earnings on March 21. 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 grow 36.4% and EPS will remain in the red.

The average estimate for revenue is $347.1 million. On the bottom line, the average EPS estimate is -$0.22.

Revenue details
Last quarter, KB Home logged revenue of $578.2 million. GAAP reported sales were 20% higher than the prior-year quarter's $479.9 million.

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 $0.14. GAAP EPS of $0.10 for Q4 were 44% lower than the prior-year quarter's $0.18 per share.

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 15.6%, 420 basis points worse than the prior-year quarter. Operating margin was 4.2%, 20 basis points better than the prior-year quarter. Net margin was 1.3%, 160 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.03 billion. The average EPS estimate is $0.14.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 582 members out of 1,255 rating the stock outperform, and 673 members rating it underperform. Among 336 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 give KB Home a green thumbs-up, and 178 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 $14.52.

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This article was originally published as Does The Street Have KB Home Figured Out?on Fool.com

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