Shares of KB Home (KBH) were crushed on Wednesday morning after the homebuilder released its third quarter results.
Although the company reported higher net income and revenue, it missed analysts’ expectations.
Inside KB Home’s Earnings Results
Earnings
The company’s third quarter profits increased 4% to $28.4 million, from $27.3 million last year. On a per share basis, earnings declined to 28 cents, from 30 cents last year. The upside in net income was primarily due to growth in home sales and higher selling prices. This upside was partially offset by a decline in home deliveries. Despite the overall increase in earnings, KBH missed analysts’ view of 40 cents per share.
Revenue
Revenue came in at $589.2 million, up from $549 in the same quarter last year. Analysts expected to see revenue of $646.8 million.
Mutual Fund on Watch
With any major earnings release, it is important to examine the mutual funds that have the largest stake in the company. Below are the mutual funds with the largest stake in KBH.
| Ticker | Mutual Fund | Stake |
|---|---|---|
| FDVLX | Fidelity Value Fund | 4.25% |
| FDFFX | Fidelity Independence | 2.87% |
| SMVFX | RidgeWorth Mid-Cap Value Equity Fund | 2.29% |
The Bottom Line
Mutual fund investors should be aware of the performance of the major holdings in the the funds that they own. Earnings reports, such as today’s release from KB Home, are a great way to measure holdings.