Jeffrey Mezger

KB Home Shares Dive 15% on Gloomy 1Q Results

KB Home (NYSE:KBH) disclosed a deeper-than-expected first-quarter loss and an 8% slump in new orders on Friday, triggering a 15% plunge in the homebuilder’s shares.

The Los Angeles-based company said it lost $45.8 million, or 59 cents a share, narrowing a year-earlier loss of $114.5 million, or $1.49 a share. Analysts had called for a loss of 24 cents a share.Revenue soared 29% to $254.6 million, badly trailing the Street’s view of $338 million.The revenue jump reflects a 21% increase in home deliveries to 1,150. The average selling price rose 6% to $219,000 amid strength on the West Coast and Southwest.However, KB Home said its net orders declined 8% to 1,197 in the first quarter and its backlog of homes soared 30% to 2,203 units worth about $353.6 million. Housing gross margins shrank to 9.7% from 12.6%.KB Home management sounded a cautiously optimistic tone about the housing marketWall Street punished KB Home for the gloomy results, sending its stock plunging 15.93% to $9.45 ahead of...

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