KB Home 2Q loss widens to $68.5 million
KB Home (KBH) second-quarter loss widened as home sales declined and revenue fell during the three months ended May 31. The Los Angeles-based home builder posted a second-quarter loss of $68.5 million, or 89 cents per share, compared to a loss of $30.7 million, or 40 cents per share, a year ago. The loss fell well below analysts' estimates, with Thomson Reuters expecting a loss of 31 cents a share. Meanwhile, KB's revenue for the quarter declined 27% to $271.7 million from $374.1 million a year earlier hurt by lower home deliveries and sales. Even though home prices rose 3% year-over-year, reaching an average selling price of $213,400 in the second quarter, KB delivered only 1,265 homes last period, down 29% from a year ago. "Uncertainty and caution about the economy are keeping many qualified homebuyers from entering the market, even though historically high housing affordability makes this a good time to buy," said Jeffrey Mezger, president and CEO of KB. "We believe the current housing market conditions will likely continue until there are meaningful and sustained improvements in job growth and consumer confidence." The company's second-quarter loss included charges on inventory impairments and abandoned land-option contracts, as well as losses tied to a loan guaranty of $14.6 million from the company's South Edge residential development venture. Write to: Kerri Panchuk.