Research Desk Line-up: Lennar Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on KB Home (NYSE: KBH), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=KBH, following the Company's release of its financial results on September 28, 2017, for the third quarter fiscal 2017 (Q3 FY17). The Los Angeles, California-based Company reported a 25% y-o-y growth in its total revenues, outperforming market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Residential Construction industry. Pro-TD has currently selected Lennar Corporation (NYSE: LEN) for due-diligence and potential coverage as the Company reported on October 03, 2017, its financial results for Q3 which ended on August 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Lennar when we publish it.
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During the three months ended on August 31, 2017, KB Home reported total revenues of $1.14 billion compared to the $913.28 million recorded at the end of Q3 FY16. Total revenues numbers topped market expectations of $1.12 billion.
The homebuilder reported net income of $50.21 million, or $0.51 per diluted share, in Q3 FY17 compared to $39.36 million, or $0.42 per diluted share, in the prior year's same period. The Company attributed the rise in net income to growth in total revenues along with improved operating margins. Meanwhile, Wall Street had expected the Company to report net income of $0.47 per diluted share.
In the reported quarter, KB Home's pretax income came in at $79.21 million compared to $53.46 million in the year-ago same period. The Company's home deliveries increased to 2,765 homes in Q3 FY17 during the reported quarter from 2,487 homes in the third quarter of FY16. Net orders grew to 2,608 homes in Q3 FY17 from 2,508 homes in the year-ago comparable quarter. Furthermore, the value of net orders were $1.07 billion during the reported quarter compared to $929.59 million in last year's same quarter.
KB Home's average home selling price increased to $411,400 in Q3 FY17 from $365,900 in Q3 FY16. The Company's end backlog increased to 5,455 homes, or $ 2.12 billion, as on August 31, 2017, from 5,226 homes, or $ 1.85 billion, as on August 31, 2016. Furthermore, the cancellation rate as a percentage of gross orders improved to 25% in Q3 FY17 from 29% in Q3 FY16.
The Company's Homebuilding revenues grew from $910.11 million in Q3 FY16 to $1.14 billion in the reported quarter. Meanwhile, the adjusted housing gross profits for Q3 FY17 came in at $247.14 million, or 21.7% of housing revenues, compared to $193.10 million, or 21.2% of housing revenues, in Q3 FY16. Furthermore, the segment's operating income came in at $76.69 million in Q3 FY17 versus $51.48 million in last year's comparable quarter.
During Q3 FY17, Financial services reported revenues of $3.21 million, up from $3.17 million recorded in the prior year's same quarter. The segment's expenses came in flat at $0.89 million in Q3 FY17. Moreover, the segment's pretax income increased to $2.98 million in Q3 FY17 from $2.41 million in the year-ago corresponding period.
Cash Flow & Balance
During the first three-quarters of FY17, KB Home's net cash flow provided by operating activities were $103.27 million compared to net cash used in operating activities of $102.61 million in the year-ago same period. The company's inventories as on August 31, 2017, amounted to $3.51 billion compared to $3.40 billion as on November 30, 2016
At the close of books on August 31, 2017, KB Home had cash and cash equivalents balance of $494.05 million versus $592.09 million at the close of books on November 30, 2016. The Company's net debt stood at $2.01 billion as on August 31, 2017, compared to $2.05 billion as on November 30, 2016. Furthermore, ratio of net debt to capital was 52.2% as on August 31, 2017, versus 54.3% as on November 30, 2016.
In a separate press release on October 05, 2017, KB Home's Board of Directors declared a quarterly cash dividend of $0.025 per share on its common stock. The dividend will be payable on November 16, 2017, to stockholders of record on November 02, 2017.
At the closing bell, on Tuesday, October 10, 2017, KB Home's stock rose 1.60%, ending the trading session at $26.74. A total volume of 2.07 million shares have exchanged hands. The Company's stock price soared 12.54% in the last three months, 33.43% in the past six months, and 68.28% in the previous twelve months. Moreover, the stock skyrocketed 69.13% since the start of the year. The stock is trading at a PE ratio of 20.59 and has a dividend yield of 0.37%. The stock currently has a market cap of $2.26 billion.
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SOURCE: Pro-Trader Daily