Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  D.R. Horton, Inc.    DHI

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

KB Home Q1 net orders fall on higher cancellations

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/23/2012 | 04:22pm CEST

KB Home (>> KB Home) posted a surprise fall in net orders as cancellations rose in the first quarter, a sharp contrast to the recent upbeat forecasts by rivals, sending its shares down 14 percent.

KB Home (>> KB Home) posted a surprise fall in net orders as cancellations rose in the first quarter, a sharp contrast to the recent upbeat forecasts by rivals, sending its shares down 14 percent.

Homebuilders such as D. R. Horton Inc (>> D.R. Horton, Inc.), Pulte Group Inc (>> PulteGroup, Inc.) and Lennar Corp (>> Lennar Corporation) have forecast an improving housing market.

Also, data released on Tuesday showed permits to build homes rose to a near 3-1/2 year high in February. However, new U.S. single-family home sales fell in February, but reported a jump in prices to their highest level in eight months.

New home sales account for about 7 percent of the overall housing market and face stiff competition from used home segment despite low levels of stock.

KB Home -- which focuses on entry level, move-up buyers and active adult home buyers -- said the pace of the recovery was uneven, with certain markets showing greater strength.

The fifth-largest U.S. homebuilder, which had posted strong order growth for the last two quarters, said orders fell 8 percent to 1,197 homes in the quarter. Orders declined in three of its four regions.

Orders are a key indicator for builders who do not book revenue until they close on a house.

The housing market is healing from a collapse that triggered the 2007-09 recession, but a glut of unsold properties and high unemployment have hindered the recovery.

Net orders at the higher-priced West Coast market fell 28 percent to 289 homes. Average selling price in this market was up by more than 6 percent. The Southwest market, where prices rose by about 26 percent, saw net orders decline 30 percent.

KB Home blamed a rise in cancellation rate -- up 36 percent from 29 percent last year -- for the fall in net orders.

The homebuilder said housing gross margin for the quarter fell to 9.7 percent from 12.6 percent last year.

UBS analyst David Goldberg said although recent anecdotal evidence suggested underperformance in the entry-level segment, the magnitude of the weakness experienced by KB Home is beyond what this would have suggested.

He added that the results were likely reflective of a company specific issue as opposed to a broader trend.

First-quarter net loss narrowed to 59 cents per share, from $1.49 per share a year ago. Revenue rose 29 percent to $254.6 million.

Analysts were expecting a loss of 24 cents per share on revenue of $337.7 million, according to Thomson Reuters I/B/E/S.

Shares of the company were down 8 percent at $10.36 on Friday morning on the New York Stock Exchange, making them the second-biggest percentage loser on the exchange. The shares have gained more than two-third in value in the past 3 months on hopes of a recovering housing market.

KB Home's disappointing performance also pushed shares of its peers down. Shares of rival Toll Brothers (>> Toll Brothers, Inc.) were down 2 percent, while shares of biggest homebuilder D.R. Horton were down 1 percent.

The S&P homebuilding sub-industry index <.GSPHOME>, which has doubled in the last six months, was trading down 2 percent, while the broader market <.SPX> was up slightly. (Reporting by Megha Mandavia in Bangalore; Editing by Sriraj Kalluvila)

By Megha Mandavia

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on D.R. HORTON, INC.
03:15p D.R. HORTON, INC. (NYSE : DHI) Files An 8-K Entry into a Material Definitive Agr..
03:12p HORTON D R INC /DE/ : Entry into a Material Definitive Agreement, Regulation FD ..
06/27 D.R. HORTON, INC. : America’s Builder, to Release 2017 Third Quarter Earni..
06/26 D R HORTON : sign comes down
06/25 D R HORTON : Development finally coming to former Deer Track Golf Resort after s..
06/23 D R HORTON : ups its bid for Austin real estate developer
06/23 FORESTAR : New twist in bidding war for Austin's Forestar Group
06/23 D R HORTON : Raises Offer to $17.75 Per Share to Acquire 75% of Forestar; Forest..
06/22 D R HORTON : Announces New Corporate Headquarters in Arlington, Texas
06/22 FORESTAR : Starwood increases offer for Austin's Forestar Group
More news
Sector news : Homebuilding - NEC
06/22 BARRATT DEVELOPMENTS : Immigration cap will damage Britain's economy, Tesco boss..
06/22 BARRATT DEVELOPMENTS : appoints White as CFO
06/21 BERKELEY : Builder Berkeley warns of Brexit impact despite profit leap
06/14 European shares slip on oil drop, weak U.S. data
06/14 Oil stocks drop hits FTSE, offsetting strong housebuilders
More sector news : Homebuilding - NEC
News from SeekingAlpha
09:23a D.R. Horton inks merger deal with Forestar Group
05:47a The Real Estate Tsunami Has A Wake
06/26 RISK ARBITRAGE TODAY : Yahoo Is Now Altaba
06/23 D.R. Horton lifts bid for Forestar Group
06/23 Credit Suisse initiates homebuilders, likes IBP, DHI, PHM
Advertisement
Financials ($)
Sales 2017 13 995 M
EBIT 2017 1 620 M
Net income 2017 1 043 M
Debt 2017 1 423 M
Yield 2017 1,13%
P/E ratio 2017 12,42
P/E ratio 2018 11,12
EV / Sales 2017 1,02x
EV / Sales 2018 0,89x
Capitalization 12 871 M
More Financials
Chart D.R. HORTON, INC.
Duration : Period :
D.R. Horton, Inc. Technical Analysis Chart | DHI | US23331A1097 | 4-Traders
Full-screen chart
Technical analysis trends D.R. HORTON, INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 21
Average target price 36,2 $
Spread / Average Target 5,6%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
David V. Auld President & Chief Executive Officer
Donald Ray Horton Executive Chairman
Michael J. Murray Chief Operating Officer & Executive Vice President
Bill W. Wheat Chief Financial Officer & Executive Vice President
Michael R. Buchanan Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
D.R. HORTON, INC.25.39%12 871
DAIWA HOUSE INDUSTRY C..19.94%22 740
SEKISUI HOUSE LTD1.62%12 150
PERSIMMON28.04%9 093
SEKISUI CHEMICAL CO LT..9.24%9 068
PULTEGROUP, INC.33.24%7 727
More Results