Jim Cramer on KB Home Earnings: Confusion in the Market Breeds Mistakes
Jim Cramer has some thoughts on KB Home.
He wrote in-depth about it on Real Money but then joined TheStreet's Katherine Ross to talk more about the company.
"Wednesday night KB Home (KBH), a very good home builder with lots of properties in Las Vegas and in California, reported what looked to me like a decent quarter on the surface. But when it was scrubbed clean on the conference call it was a nightmare. The analysts, after having their hopes dashed by COVID then got them lifted by lower interest rates and then positively buoyed by broad aggregate mortgage data only to find that KB Home simply didn't see the bombs-away numbers that the community expected," wrote Cramer.
"I wasn't sure myself whether the company was just being cautious because much of the information asked about occurred after the quarter was over and CEOs can be circumspect about those post-quarter periods, or whether KB Home just wasn't feeling it, wasn't seeing it and wasn't getting it," he continued. "I think things even got a little testy when an analyst was questioning seasoned CEO Jeffrey Mezger about the hoped-for boom and Mezger laid it out on the line, that a lot of his potential customers had lost their jobs and "where you lost your job, you have to get a job back to come back to buy from us again."
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