Jim Cramer Notes KB Home Posted a "Disappointing Set of Numbers"

KB Home (NYSE:KBH) is one of the stocks Jim Cramer offered insights on. Cramer discussed the company’s earnings during the episode and said:

“Alright, how about KB Home? Smaller, but it reported after the close. They also had a disappointing set of numbers. Like Lennar, they did beat on some lines for the… quarter. Home… delivered and revenues were both ahead of expectations, even as they fell 9 and 15%, respectively. I told you, this group is very difficult. Adjusted earnings per share beat expectations too, even as it fell 24% from the year ago period, but average selling price was down 7% and missed expectations.

Home building gross margins were down nearly 400 basis points. What did I tell you? That’s the key metric. Fell well short of the Street’s expectations. And KB Home’s home building operating income fell 49% and came in well short of the consensus estimates. Like Lennar, KB Home’s forward-looking metrics looked, well, like the new orders, they’re weak. And its outlook for both the current quarter and the year ahead was far below what analysts were looking for. So, it’s no surprise that KBH’s shares are lower.”

KB Home (NYSE:KBH) builds and sells homes for different kinds of buyers and provides related financial services, including mortgage, insurance, and title services.

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Disclosure: None. This article is originally published at Insider Monkey.