KB Homes (KBH) is expected to report earnings on Thursday, Mar. 22nd, after market close. The whisper number is $0.27, one cent behind the analysts’ estimates and showing little confidence from the WhisperNumber community. 

A year ago the company reported earnings of $0.15. KBH has a 64% positive surprise history (having topped the whisper in 36 of the 56 earnings reports for which we have data).

Earnings history:

 Beat whisper: 36 qtrs
 Met whisper: 0 qtrs
 Missed whisper: 20 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we analyze what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

The strongest price movement of +0.5% comes within twenty trading days when the company reports earnings that beat the whisper number, and -4.9% within ten trading days when the company reports earnings that miss the whisper number. The overall average post earnings price move is ‘as expected’ (beat the whisper number and see strength, miss and see weakness) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction:

The company has reported earnings ahead of the whisper number in all of the past four quarters with a whisper number. In the comparable quarter last year the company reported earnings in-line with the whisper number. Following that report the stock realized a 1.2% loss in one trading day. Last quarter the company reported earnings five cents ahead of the whisper number. Overall historical data indicates the company to be (on average within thirty trading days) an ‘as expected’ price reactor when the company reports earnings.

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