KB Homes doesn’t expect improvement on the housing front any time soon.
In their latest fiscal quarter, KB missed analyst estimates by fourteen cents per share with an 87-cent loss for their fiscal third quarter. Inventory, joint venture, and land-related writedowns weighed down on earnings. The company could lose $2.75 per share for 2009, and then still be in red during 2010 as per consensus estimates. KBH shares are down over 6% today.
KB Homes CEO: “While tentative indications are that some negative economic trends are slowing or levelling out to varying degrees in certain markets, the ongoing impact of and the potential for increased foreclosures and mortgage delinquencies, higher unemployment, tighter credit standards, and relatively weak consumer confidence make the timing and extent of a sustained rebound still uncertain.”
More worryingly, average selling prices remained well below their level one year ago, and 7% down from last quarter.
Last quarter’s supplemental data for comparison: