Slammed by a 32% plunge in new orders, KB Home (KBH) said Tuesday it suffered a deeper first-quarter loss, sparking a 9% drop in the home builder’s stock.
Los Angeles-based KB Home said it lost $114.5 million, or $1.49 a share, last quarter, compared with a lighter loss of $54.7 million, or 71 cents a share, a year earlier. Analysts had been calling for a loss of 27 cents a share.
Sales slid 25% to $196.9 million, badly trailing the Street’s view of $223.6 million.
KB Home disclosed a 32% tumble in net orders to 1,302 homes and said its deliveries declined 28% to 949. The company blamed the deterioration on the disappearance of the federal homebuyer tax credit.
At the end of the quarter, KB Home had 1,689 homes in backlog representing $353.6 million in projected future housing revenue.
“While there is still uncertainty as to when a sustained housing recovery may occur, we believe that our operational business model and proven strategies will continue to provide us with a competitive advantage as we navigate through these persistently challenging times,” CEO Jeffrey Mezger said in a statement.
KB Home said its housing revenues fell 26% due to fewer homes delivered. However, the home builder’s first-quarter average selling price increased 4% from a year earlier to $205,700.
The Southeast saw the biggest price bump, jumping 26%. Shares of KB Home slumped 8.85% to $11.12 ahead of Tuesday’s opening bell.