KB Home’s stock falls from 16-year high despite blowout earnings and bright outlook

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

KB Home's strong results and upbeat outlook pleased Wall Street analysts, but the home builder's stock pulled back from a 16-year high.

KB Home pleased Wall Street analysts with its fiscal second-quarter results and full-year outlook, but those weren’t good enough for investors who had bid up the stock to a 16-year high ahead of the results.

The home builder’s KBH shares slumped 1.7% in morning trading Thursday, putting them on track to snap a four-day winning streak and to mark only a third loss in 15 trading sessions. Revenue grew 2.6% to $1.76 billion, well above the FactSet consensus of $1.43 billion, as homes delivered rose 5.7% to 3,666, far exceeding expectations of 2,971.

“With respect to demand, buyers are adjusting to higher mortgage rates, and the continuation of the more stable rate environment is a positive factor,” said Chief Executive Jeff Mezger on the call, according to an AlphaSense transcript. In a note to clients, he wrote that following KB Home’s results “it is becoming increasingly clear that not only are the public builders gaining market share” from a tight resale market and private competitors that are becoming increasingly strained, but that the “overall demand environment is improving.”

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: Wall Street quiet ahead of Powell testimonyU.S. markets are down a little bit ahead of Federal Reserve Chair Jerome Powell’s appearance before Congress, where he’s expected to field questions about the central bank’s inflation-fighting interest rate policies.
Source: wjxt4 - 🏆 246. / 63 Read more »