Big LV homebuilder beats earnings estimates

Tuesday, March 21, 2000 | 10:56 a.m.

Kaufman & Broad Home Corp. of Los Angeles, the largest homebuilder in Las Vegas, said its first-quarter profit jumped 52 percent, beating analyst expectations, on higher home prices and sales.

Profit from continuing operations for the quarter ending Feb. 29 rose to $24.6 million or 56 cents a share compared with net income of $16.2 million or 35 cents in the year-ago quarter.

The company was expected to earn 54 cents, based on the average estimate of nine analysts polled by First Call/Thomson Financial. Revenue rose 15 percent to $799.6 million.

Chief Financial Officer Michael Henn said a slowdown in housing orders and one-time charges from cost-cutting programs will cause the company to miss second-quarter profit expectations.

Henn said second-quarter earnings will fall below estimates of 75 cents a share but be above year-ago earnings of 58 cents.

But he said growth should rebound in the second half of 2000, allowing the company to meet full-year profit expectations.

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