KB Home (KBH - Free Report) has bought 13 acres of land in Cary near US-1/US-64 where it plans to build 41 new homes at Wynwood community.
This Los Angeles, CA-based homebuilder’s planned Wynwood community will feature large homesites and single-family homes ranging from 2,194 to 3,098 square feet. This community is well connected with downtown Raleigh, I-40, I-440, US-64 and I-540.
The one- and two-story homes will follow ENERGY STAR guidelines and will be equipped with advanced energy- and water-saving features like WaterSense fixtures.
Development of the site is expected to start soon, with a grand opening planned for early next year. KB Home presently has seven communities open for new homes in the Triangle market.
KB Home’s third-quarter 2016 earnings surpassed analysts’ expectations by 7.7% and also increased 83% year over year. Although the company failed to meet the consensus mark for revenues, the reported figure surged 8.3% on double-digit growth in deliveries and housing revenues as well as improved operating margin. Strong new orders (up 16%) and backlog (up 12%) should favor KB Home in 2017 as well.
That said, KB Home’s community count declined in the last reported quarter. It is expected to drop further in the fourth quarter. The company does not expect the count to improve before 2017 (read more: KB Home Tops Q3 Earnings, Revenues Miss Estimates).
Peer Earnings Release
On Oct 5, Acuity Brands, Inc. (AYI - Free Report) reported fourth-quarter fiscal 2016 adjusted earnings of $2.09 per share, missing the Zacks Consensus Estimate of $2.27 by 7.9%. The reported figure however increased 28.2% from $1.63 a year ago, led by higher volume and operating margin.
Upcoming Peer Releases in the Construction Sector
PulteGroup, Inc. (PHM - Free Report) will release its third-quarter 2016 earnings on Oct 20. The Zacks Consensus Estimate for the quarter is pegged at 43 cents per share.
Masco Corporation (MAS - Free Report) will report its third-quarter 2016 earnings on Oct 25. The Zacks Consensus Estimate for the quarter stands at 44 cents per share
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