KB Home ( KBH), the homebuilder, said revenue for the quarter ended Feb. 29 totaled $254.6 million, much lower than analysts' views of $337.7 million. KB Home reported a quarterly loss of $45.8 million, or 59 cents a share; analysts were expecting a loss of 24 cents. The announcement was a huge disappointment given that analysts were expecting the company to blow past expectations. The company posted a profit in the November-ended quarter after three straight quarterly losses, leading some to believe it had seen a turnaround along with the broader housing market. Shares were plunging 6.6% to $10.50 in premarket trading.
Darden Restaurants ( DRI), the parent of Red Lobster and Olive Garden, reported third-quarter earnings of $1.25 a share, up from $1.08 a year earlier, and slightly above analysts' expectations of $1.24 a share. Sales were $2.16 billion, beating the forecast $2.14 billion. The restaurant group said that sales grew 4.1% compared to the period a year earlier at Red Lobster, Olive Garden and LongHorn Steakhouse amid favorable weather conditions, underlying business strength and deceleration in food cost inflation over the year. Darden also announced a quarterly cash dividend of 43 cents a share, payable on May 1. Shares were rising 0.4% to $52.01 before the bell.
US Airways ( LCC), seeking support for a possible American Airlines merger, is discussing a takeover plan with some creditors of the bankrupt carrier and their advisers, people with knowledge of the talks told Bloomberg. Executives have laid out details of US Airways' proposal for a combined airline to some members of the unsecured creditors committee and gotten a positive reception, the people told Bloomberg. The goal would be to complete a merger before AMR, American's parent, exits Chapter 11. US Airways shares were up 0.4% to $7.36.
Micron Technology ( MU), the chipmaker, posted a fiscal second-quarter loss of $224 million, or 23 cents share, on revenue of $2.07 billion. Analysts were looking for a loss of 19 cents a share on revenue of $2.02 billion. The stock was falling more 4.3% to $8.34.
Bank of America ( BAC) has begun a pilot program that will offer some of its mortgage customers facing foreclosure a chance to stay in their homes by becoming renters instead of owners. Launched this week, the pilot program -- "Mortgage to Lease" -- will be offered to less than 1,000 Bank of America customers in test markets in Arizona, Nevada and New York.
-- Written by Joseph Woelfel and Chao Deng >To contact the writer of this article, click here: Joseph Woelfel Related links:
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