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KB Home (NYSE: KBH) said on Wednesday that its earnings in the fiscal first quarter came in better than expected, despite the ongoing Coronavirus pandemic that has so far infected more than 30 million people in the United States and caused over half a million deaths. The company, however, fell shy of Wall Street estimates for revenue in Q1.

KB Home shares were reported more than 4% down in after-hours trading on Wednesday. Including the price action, the stock is now exchanging hands at £30.41 per share after recovering from a low of £11.79 per share in the first week of April 2020, when the COVID-19 crisis was at its peak. If you want to invest in the stock market, you will need a reliable stockbroker – here is a list of the top few to make selection easier for you.

KB Home’s Q1 financial results versus analysts’ estimates

KB Home said that its net income in the first quarter came in at £71.27 million that translates to 75 pence per share. In Q1 of last year, it had posted a significantly lower £43.64 million of net income or 46.05 pence per share.

The homebuilding company said that it generated £830 million of revenue in the recent quarter versus the year-ago figure of £790 million. According to FactSet, experts had forecast the company to post £880 million of revenue in Q1. Their estimate for per-share earnings was capped at a lower 67.25 pence.

In separate news from the United States, General Motors slashed its production further in North America due to global chip shortage.

Chief Executive Jeffrey Mezger’s comments on Wednesday

CEO Jeffrey Mezger commented on the earnings report on Wednesday and said:

“With our full-year coming into better view, supported by a 74% year-over-year increase in our backlog value and our ability to match housing starts to net orders, we believe we are now even better positioned for meaningful growth in 2021. We are executing on our plan to expand our scale while driving both margins and returns higher.”

In the prior quarter (Q4), KB Home had registered £77.58 million of net income, as per the report published in January.

KB Home remained almost flat on average in the stock market last year with an annual decline of about 1%. At the time of writing, the Los Angeles-based firm is valued at £2.91 billion and has a price to earnings ratio of 13.85.

The post KB Home’s revenue fall shy of Wall Street estimates in Q1 appeared first on Invezz.



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