KB Home Reports Disappointing Orders. Is This a False Dawn In Homebuilding?
The COVID-19 pandemic has caused something of an exodus out of the cities and into the suburbs. Redfin just reported that the percentage of homebuyers looking to relocate is at a record. The Census Bureau just reported that new home sales are up 12.7% from a year ago. Homebuilder Lennar reported a strong recovery in traffic and orders as well. But then, KB Home (NYSE: KBH) reported disappointing order growth. This environment should be picture-perfect for homebuilders. So what is going on?
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KB Home reported earnings of $0.55 per share for the quarter ending May 31. That was higher than the Street's estimate, but revenues fell over 10% and orders disappointed. Following the earnings release, KB Home stock fell about 12%. CEO Jeffrey Mezger had this to say about the quarter:
Source Fool.com
