KB Home (KBH 22.75, +0.53): +2.4% after reporting better-than-expected earnings and revenues.
KB Home is on average more upscale than LGIH with ASP $411,400. Revenue up 25% for nine months ending 8-31-2017. They are in Arizona, California, Colorado, Florida, Nevada, North Carolina and Texas.
This was scheduled to be reported after close on 28th. Perhaps good omen for LGIH’s Q3 which we will get in early November.
I listened to the KB Home call. They estimate they lost 50 closings in Texas due to Harvey. No flooding in their communities. Irma, no flooding. Total of 60 to 80 closings lost between Harvey and Irma. I think he said that next quarter might be impacted by 75 to 100 fewer than previously anticipated closings. KBH up 8.5% and LGIH up 1% as of about 11 a.m. NYC time.
I smiled a bit when the CEO praised KBH’s “industry leading” absorption rate of 3.8…
KC, long LGIH, no position KBH