KB Home Fourth Quarter Earnings Sneak Peek

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KB Home (NYSE:KBH) will unveil its latest earnings on Thursday, December 20, 2012. KB Home constructs and sells homes through its operating divisions across the United States under the name KB Home. It operates a homebuilding and financial services business serving homebuyers in markets nationwide.

KB Home Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 6 cents per share, a decline of 66.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 7 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 6 cents during the last month.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net loss of 10 cents per share against a mean estimate of a loss of 17 cents, and the quarter before, the company exceeded forecasts by 5 cents with net loss of 31 cents versus a mean estimate of a loss of 36 cents.

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A Look Back: In the third quarter, the company swung to a profit of $3.3 million (4 cents a share) from a loss of $9.6 million (13 cents) a year earlier, beating analyst estimates. Revenue rose 15.6% to $424.5 million from $367.3 million.

Wall St. Revenue Expectations: Analysts predict a rise of 18.2% in revenue from the year-earlier quarter to $567.1 million.

Analyst Ratings: There are mostly holds on the stock with 10 of 15 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6.4% in the fourth quarter of the last fiscal year, 29.3% in the first quarter and 11.4% in the second quarter before increasing again in the third quarter.

Heading into this earnings season, the company is looking to build on good signs from last quarter. The company reported losses in the first quarter and the second quarter, but finished in the black with income of $3.3 million in the third.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.22 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 5.0 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 6.9% to $2.33 billion while liabilities rose by 2.3% to $446.1 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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