 |
|
| Author |
My Homeys - the homebuilders Replies |
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11740
Location: Los Angeles, California
|
 Posted: Fri Sep 23, 2011 5:48 pm Post subject: |
 |
|
FYI--following is KBH's fiscal 3Q earnings:
-----------------------------------------------------------------------------------
KB Home posts wider loss for fiscal 3Q
KB Home reports wider loss, fewer home deliveries in fiscal 3rd quarter
LOS ANGELES (AP) -- KB Home on Friday became the latest major homebuilder to report a surge in new home orders for the closing months of summer and said it anticipates the sales increase will continue next year.
The company posted a wider third-quarter loss than a year earlier, however, as completed home sales tumbled 31 percent.
Orders for new homes jumped 40 percent for the quarter that ended Aug. 31. An increase in the number of KB Home developments with houses available helped, but the improvement mainly resulted from comparison with an easy year-ago sales benchmark.
Like most builders, KB saw orders slow in the second half of last year after homebuyer tax credits expired at the end of April 2010. Sales of new homes nationwide remained weak through last summer and much of the fall and, even with the incentive, new home sales in 2010 were the lowest on records going back 47 years.
That's made it easier for builders this year to show improvement. This month, Lennar Corp., Meritage Homes Corp. and The Ryland Group Inc. each touted higher summer orders.
The same government incentive also boosted builders' home deliveries and revenue last summer, and that's made those numbers tougher to beat.
In its latest quarter, KB's revenue sank 27 percent to $367.3 million, while its loss widened to $9.6 million, or 13 cents per share, from a loss of $1.4 million, or 2 cents a share, a year earlier.
Analysts polled by FactSet were expecting a larger loss of 16 cents a share but higher revenue of $390.4 million.
KB Home shares rose 19 cents, or 3.3 percent, to close Friday at $5.91.
CEO Jeffrey Mezger said that the quarter's sales trends suggest the housing market is stabilizing, but he cautioned that a full housing recovery still depends on job growth and improved consumer confidence.
The new-home market continues to be weighed down by weak consumer confidence, high unemployment, competition from foreclosures and tight mortgage-lending standards. New home sales fell in four of this year's first seven months, threatening a 2011 total even lower than 2010's.
But Mezger expects new home orders and average home sale prices in the current quarter to eclipse those of a year earlier. And he sees the company ending its fiscal year with a substantially bigger backlog of homes under contract than it had a year earlier.
Those improvements will position KB to turn a profit in its fiscal fourth quarter, the executive said. The company has posted a loss the past three quarters.
The Los Angeles company builds homes to order in 12 states and was the fifth-largest homebuilder in the nation last year, ranked by closings. It said it delivered 1,603 homes in the quarter, compared with 2,320 last year. The decline in home deliveries was partially offset by a 6 percent increase in average selling price.
KB's new home orders were particularly strong in July and August, with its California divisions posting a better than 70 percent jump from a year earlier. KB has focused much of its land acquisition and resources on California and Texas, where it sees opportunities for growth.
Even in Las Vegas, which has maintained the highest foreclosure rate in the nation throughout the housing bust, KB saw sales increase 80 percent from a year earlier.
The builder opened more than 60 communities in the first half of this year and another 33 in the third quarter, a 10 percent increase over last year.
Meanwhile, KB said it is cautiously optimistic that its South Edge LLC joint venture in Las Vegas, which has been at the center of a dispute between the builder, its partners and a group of lenders, will have a court approve its plan of reorganization in the fourth quarter or early next year. |
|
| Back to top |
|
 |
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11740
Location: Los Angeles, California
|
| Posted: Fri Jan 07, 2011 10:46 am Post subject: |
|
|
Morningstar on KBH's 4Q earnings:
| Quote: | | Despite ongoing demand headwinds, KB Home KBH took a major step forward on its path to sustained profitability in the fourth quarter. Overcoming a 37% year-over-year drop in homes delivered, KB Home posted a 770-basis-point full-year improvement in adjusted gross margin and a 30-basis-point improvement in its selling, general, and administrative expense burden to deliver its second consecutive quarter of operating profit, surpassing our and Wall Street estimates for roughly break-even results. A modest $3 million inventory impairment in the quarter, down from $76 million a year ago, underscores that the company continues to shore up its footing. The balance sheet also remains sound, with more than $1 billion of cash on hand and trailing-12-month inventory turnover improving to 1.3 times from 1.0 last year. This sound performance dramatically increases visibility on our forecast for the firm to resume recurring profitability in the year ahead. Further, these results place KB Home in a select cohort of homebuilders posting high teens or better gross margins and operating profit despite generationally low demand for new housing. KB Home's tepid top-line performance was the one notable though unsurprising negative of the quarter. Orders fell 25% year over year on continued flaccid macroeconomic conditions. Yet this drop represents a sequential improvement from the 39% fall in orders seen in the third quarter. Also of modest encouragement, cancellation rates abated sequentially, falling to 29% from 33%. The demand picture may begin to improve in the year ahead, perhaps dramatically so. The last few months of national jobs and consumer confidence data hint that firming economics for U.S. households could translate into increasing orders for new homes sometime in 2011, which would only add to KB Home's growing operational momentum. |
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11740
Location: Los Angeles, California
|
| Posted: Sat Sep 25, 2010 12:33 am Post subject: |
|
|
Morningstar on KBH's 3Q earnings:
| Quote: | | KB Home KBH reported a net loss of $0.02 per share versus our estimate of a loss of $0.37 in its third quarter, as strong top-line outperformance and tight overhead control combined to produce a stalwart 20% sequential incremental operating margin. Broadly, these results mark a material development for the company, increasing visibility that KB Home can achieve sustainable profitability with just a small improvement in the rather abysmal current conditions of the housing market. More narrowly, this announcement should bring relief to the stock after last quarter's modestly disappointing results driven by lackluster selling, general, and administrative expense management. Friday's report wasn't all rosy, however. Quarterly orders fell roughly 25% below our forecast , indicating that sustainable profitability for KB Home may be delayed for several quarters. The company's downtrodden stock price, at roughly book value, more than reflects this postponement, in our view. And while our near-term earnings estimates may be reduced because of this disappointing order activity, our fair value estimate remains unchanged. |
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11740
Location: Los Angeles, California
|
| Posted: Fri Apr 30, 2010 11:33 am Post subject: |
|
|
Morningstar on DHI's 2Q earnings:
| Quote: | | D.R. Horton's DHI outstanding fiscal second-quarter results indicate the company is taking full advantage of current conditions, with strong growth in revenue, orders, and backlog contributing to its second straight profitable quarter. We're hesitant to assume such strong results will continue after the expiration of the federal homebuyer tax credit, but are nonetheless examining our fair value estimate for a possible increase. Closings, orders, and backlog increased 19%, 55%, and 38%, respectively, year over year, indicating that D.R. Horton is outselling its competition in many markets. The company is known for aggressively pursuing market share, a feat it successfully performed in the quarter. Average selling prices were off 9% from the prior year, but not far from where they've settled for the past several quarters. Overall sales increased 16% from a year ago, the company's second straight quarter of sales growth after 13 straight quarters of decline. Horton marked its second straight quarter of pretax profits, making $12 million before taxes. Driving the gain was an improved gross margin of 18%. This was the strongest level since 2006, and 3.6 points above selling, general, and administrative expense. Horton deserves much credit for getting its homebuilding operation in tip-top shape as fast as any of its competitors. However, we think Horton has easily been the one of most aggressive builders in pursuing tax credit business, so we are a bit unsure of how its growth and profits will shake out once the credit expires. Liquidity remains outstanding, as the company retired roughly $360 million of debt during the quarter. Ending net debt/net capital was an impressive 21%, aided by $1.86 billion of total cash and equivalents (including restricted cash of $199 million). |
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
| Posted: Tue Apr 06, 2010 10:37 am Post subject: |
|
|
With the bond insurers some of the trash I've stayed resolutely away from. One out of two ain't bad: 
| Code: |
Brian Gilmartin
Credit Suisse cuts the homebuilders
4/6/2010 9:37 AM EDT
Ironically, CS reduces the homebuilders on the same morning Meritage comes out and pre-announces a good March quarter at least in terms of revenues, and said that every month of the March '10 quarter improved sequentially, although MTH admitted they were more optimistic coming into the quarter.
If there is one group that remains unloved and with little positive sentiment surrounding it in this market it would have to be the homebuilders, and of that sector, the high end like TOL, remains the most out of favor. One subscriber wrote after our coverage of the TOL earnings call that high-end housing was absolutely dead, which is what we wanted to hear. Hard to believe that high-end housing gets materially worse with all the bad news baked into the sector. |
http://www.economist.com/specialreports/displaystory.cfm?story_id=15793036
http://www.economist.com/specialreports/displaystory.cfm?story_id=15793104
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
| Posted: Mon Mar 30, 2009 7:50 pm Post subject: |
|
|
"KB Home continues to operate in a national housing market that is severely challenged by inventory oversupply, declining home prices, tightening lending standards, rising unemployment and weakening consumer confidence," said Jeffrey Mezger, president and chief executive officer. "In response, we continue adjusting our business to these market conditions to position the company for a return to profitability…”
However, in the conference call, KBH said that it sees sequential rise in orders, although numbers will be down from a year ago.
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11740
Location: Los Angeles, California
|
| Posted: Sat Feb 28, 2009 11:12 am Post subject: |
|
|
A must-read. Morningstar estimates a sustainable housing starts number for the next five to six years:
http://news.morningstar.com/articlenet/article.aspx?id=281220
| Quote: | | In order to arrive at an estimate of sustainable demand for housing starts (as opposed to demand for housing), we need to make a few more adjustments: 1) estimate and subtract from underlying demand net placements of mobile homes (about 10% of demand might be met by this source of supply) and 2) estimate and add to underlying demand the number of starts that are not completed (about 4%). Doing so for each of the estimates above suggests underlying demand for starts of 1.56 million to 1.85 million per year, a very healthy level that bodes well for wood product producers in the long run. Our own estimate of future sustainable demand is 1.72 million per year, which we've overlaid against historical starts in the table below to provide a sense of how our forecast compares with the past 50 years of actual data. |
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
| Posted: Mon Feb 02, 2009 10:51 am Post subject: |
|
|
Ryland teams with Oaktree to pick over the bones of other builder's labor. Even in this depression this could put the profit back in Ryland.
http://www.tradingmarkets.com/.site/news/Stock%20News/2154281/
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11740
Location: Los Angeles, California
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16939
Location: Sunny California
|
|
| Back to top |
|
|
Please log in to view without the ad banners |
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
Powered by phpBB
|
FAQ
Search
Memberlist
Usergroups
Statistics
Register
Profile
Log in to check your private messages
Log in
