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 news 

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 CET

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.
12/02 D R HORTON : Southwest Florida Division Launches Freedom Homes
11/30 D R HORTON : Freedom Homes Introduces Plans for Sale at Cascades in River Hall
11/29 D R HORTON : Freedom Homes introduces plans for sale at Cascades in River Hall
11/23 D.R. HORTON, INC. : ex-dividend day
11/19 D R HORTON : Hampton Creek Lift Station
11/18 D R HORTON : HORTON D R INC /DE/ MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCI..
11/17 D R HORTON : America's Builder, Reports Fourth Quarter and Fiscal 2016 Earnings ..
11/16 D.R. HORTON, INC. : Post Earnings Coverage as DR Horton Pretax Income Soared 28%
11/12 D R HORTON : Oklahoma City building permits from The Oklahoman, Nov. 12, 2016
11/11 FEDERAL NATIONAL MORTGAGE ASSCTN FNN : Lakefront property in Gilbert sells for $..
More news
Sector news : Homebuilding - NEC
12/06DJTOLL BROTHERS : Sees Strong 2017, Powered by Millennial Buyers -- Update
12/06 TOLL BROTHERS : Homebuilder Toll Brothers eyes millennials as revenue growth con..
12/03DJTOLL BROTHERS : Earnings Reports Could Shed Light on Home Building Sector
12/02 BERKELEY : says demand down 20 percent after tax hike, Brexit
11/30 ConvaTec, Smurfit Kappa to join FTSE 100 after reshuffle
More sector news : Homebuilding - NEC
News from SeekingAlpha
12/05 Dividend Raises And Cuts For November 2016
11/30 Homebuilders lag as rates climb, mortgage apps tumble
11/22 3 Reasons To Look At KB Homes
11/17 Big day for homebuilders after housing starts numbers
11/08 D. R. Horton Inc. 2016 Q4 - Results - Earnings Call Slides
Advertisement
Financials ($)
Sales 2017 13 562 M
EBIT 2017 1 575 M
Net income 2017 1 011 M
Debt 2017 1 261 M
Yield 2017 1,28%
P/E ratio 2017 11,07
P/E ratio 2018 9,99
EV / Sales 2017 0,92x
EV / Sales 2018 0,79x
Capitalization 11 210 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
TrendsBullishBearishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 33,8 $
Spread / Average Target 15%
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 Outside Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
D.R. HORTON, INC.-10.15%11 210
DAIWA HOUSE INDUSTRY C..-6.60%19 022
SEKISUI HOUSE LTD-8.06%11 768
SEKISUI CHEMICAL CO LT..13.69%8 111
PERSIMMON PLC-16.33%6 742
PULTEGROUP, INC.11.39%6 565
More Results