KB Home Down 11% on Disappointing Earnings

KB Home

is trading lower on the session following its Q1 earnings announcement this morning. The company reported EPS of $-0.59, which may not compare to $-0.24 estimate and revenues of $254.6 million vs $337.72 million estimate. Jeffrey Mezger, president and chief executive officer of KB Home said: “Reflecting the improving trends in the economy, including recent job growth and higher consumer confidence, we are seeing signs that the overall housing market is stabilizing and beginning to recover. The pace of the recovery is uneven, however, with certain local markets showing greater strength and more normalized activity than other areas where a rebound will take longer to manifest. We expect that the housing market in general will gradually strengthen as the economy continues to advance.” KB Home is currently trading at $10.00, a loss of $1.24 or 11.03%.