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Looking for the Big Picture on KBH Earnings

By Scott Rothbort

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KB Home is scheduled to report results for the fourth quarter and fiscal 2008 (for the period ended Nov. 30, 2008) before the market opens Friday; the company will conduct its quarterly conference call at midday. Analysts expect KBH to lose $1.24 a share on revenue of $793 million. I would note the wide range of EPS estimates -- analysts are looking for a per-share loss of anything from 20 cents to $3.70. In other words, the "consensus" estimate is not very reliable given what is likely a large standard deviation in estimates. In the prior year's quarter, KB Home lost $9.99 a share; in the sequential quarter, the company posted a $1.87-a-share deficit. The last major homebuilder earnings I covered was for Toll Brothers , in what is now the infamous "ferschlug" conference call. In that call, it became apparent that the headwinds for the housing...

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