Wedbush analysts shared their outlook on KB Home (NYSE:KBH) ahead of the company’s Q2 earnings (scheduled to be reported on June 22), reiterating their outperform rating and $73 price target.
The company pre-released preliminary Q2/22 operating data on June 7 but did not reveal any preliminary average price or profit margin details. Based on the preliminary data, the company was at the high end of the closing guidance.
The analysts suspect the main catalyst was some closings that slipped to Q2 from Q1 because of Omicron, but if there was a positive change in the supply chain issues, that would be positive for the company.
Preliminary Q2 orders were 9% lower year-over-year at 3,900 homes compared to the consensus estimate of a 1% decline. Preliminary closings were 1% lower year-over-year at 3,500 homes which were ahead of the consensus estimate of a 3% decline.
The analysts maintained their Q2 EPS estimate of $2.01, compared to the consensus estimate of $1.99 and their total sales estimate of $1.6 billion (in line with the consensus estimate).