Group 1 - Cintas Corp. is expected to report quarterly earnings of $1.19 per share on revenue of $2.70 million [2] - Micron Technology Inc. reported fourth-quarter revenue of $11.32 billion, exceeding analyst estimates of $11.22 billion, with adjusted earnings of $3.03 per share, surpassing expectations of $2.86 per share [2] - Thor Industries Inc. is anticipated to post earnings of $1.24 per share on revenue of $2.33 billion for the latest quarter [2] - AAR Corp. reported positive earnings for the first quarter, although shares fell by 0.7% in after-hours trading [2] - KB Home is expected to report quarterly earnings of $1.50 per share on revenue of $1.59 billion [2]

Homebuilder company KB Home KBH aims to reverse recent trends in the sector and the company's performance, as indicated by its recent earnings report, when third-quarter financial results are reported on Wednesday after the market close.Earnings Estimates: Analysts expect KB Home to report third-quarter revenue of $1.59 billion, down from $1.75 billion in last year's third quarter, according to data from Benzinga Pro.The company beat analyst estimates for revenue in the second quarter and has beaten estimat ...

Core Viewpoint - KB Home is expected to report a decline in earnings and revenue for the third quarter compared to the previous year [1] Group 1: Earnings Expectations - Analysts anticipate KB Home will report earnings of $1.51 per share for Q3, down from $2.04 per share in the same period last year [1] - The company projects quarterly revenue of $1.59 billion, a decrease from $1.75 billion reported a year earlier [1] Group 2: Recent Performance - In Q2, KB Home reported revenue of $1.52 billion, surpassing analyst estimates of $1.51 billion [2] - The company also reported Q2 earnings of $1.50 per share, exceeding analyst expectations of $1.47 per share [2] - KB Home shares fell by 2.4% to close at $62.40 on the day of the report [2] Group 3: Analyst Ratings - B of A Securities analyst maintained a Neutral rating and raised the price target from $60 to $67 [8] - Wells Fargo analyst maintained an Underweight rating and increased the price target from $50 to $60 [8] - Keefe, Bruyette & Woods analyst maintained a Market Perform rating and reduced the price target from $65 to $58 [8] - Evercore ISI Group analyst maintained an Outperform rating and lowered the price target from $77 to $70 [8] - Barclays analyst maintained an Equal-Weight rating and cut the price target from $56 to $49 [8]

Core Viewpoint - KB Home is expected to report a decline in earnings and revenue for the third quarter compared to the previous year, indicating potential challenges in the housing market [1]. Financial Performance - For the third quarter, KB Home is projected to report earnings of $1.51 per share, down from $2.04 per share in the same period last year [1]. - The company anticipates quarterly revenue of $1.59 billion, a decrease from $1.75 billion reported a year earlier [1]. - In the second quarter, KB Home reported revenue of $1.52 billion, surpassing analyst estimates of $1.51 billion, and earnings of $1.50 per share, exceeding estimates of $1.47 per share [2]. Stock Performance - KB Home shares experienced a decline of 2.4%, closing at $62.40 on a recent Monday [2]. Analyst Ratings - B of A Securities analyst maintained a Neutral rating and raised the price target from $60 to $67 [8]. - Wells Fargo analyst maintained an Underweight rating and increased the price target from $50 to $60 [8]. - Keefe, Bruyette & Woods analyst maintained a Market Perform rating and reduced the price target from $65 to $58 [8]. - Evercore ISI Group analyst maintained an Outperform rating and lowered the price target from $77 to $70 [8]. - Barclays analyst maintained an Equal-Weight rating and cut the price target from $56 to $49 [8].

Market Overview - Major indexes reached record-setting closing highs last week, but pre-market futures indicate a sell-off with the Dow down 170 points, S&P 500 down 22 points, Nasdaq down 92 points, and Russell 2000 down 5.5 points [1] - Bond yields remain flat, with the 10-year yield at 4.13% and the 2-year yield at 3.58% [1] Earnings Reports and Economic Data - No major earnings reports or economic data are expected today, as the market is in between quarterly earnings seasons [2] - Early Q3 earnings season is considered underway, with companies like FedEx already reporting [5] - Upcoming earnings reports include AutoZone, Micron, KB Home, and Costco [5] Economic Indicators - This week will see the release of New & Existing Home Sales figures for August, flash Services PMI from S&P and ISM, Retail/Wholesale Inventories, Durable Goods Orders, and the final print on Q2 GDP [6] - Personal Consumption Expenditures (PCE) for August will be released on Friday, which is the Fed's preferred gauge of inflation [6] Inflation Metrics - Headline PCE year over year is expected to increase by 10 basis points to +2.7%, following two months at +2.6% and a low of +2.2% in April [7] - Core PCE year over year is expected to remain at +2.9%, consistent with previous months [8] - The Fed's optimal inflation level is +2.0%, with the closest metric reaching +2.6% in April of this year [8]

Market Overview - Major indexes reached record-setting closing highs last week, but pre-market futures indicate a sell-off with the Dow down 170 points, S&P 500 down 22 points, Nasdaq down 92 points, and Russell 2000 down 5.5 points [1] - Bond yields remain flat, with the 10-year yield at 4.13% and the 2-year yield at 3.58% [1] Earnings Reports and Economic Data - No major earnings reports or economic data are expected today, as the market is in between quarterly earnings seasons [2] - Early Q3 earnings season is considered underway, with companies like FedEx already reporting [5] - Upcoming earnings reports include AutoZone, Micron, KB Home, and Costco [5] Federal Reserve Insights - Fed officials, including New York Fed President John Williams and others, will be speaking today [2] - Recent monetary policy decisions included a 25 basis points cut in interest rates, with Stephen Miran advocating for a more aggressive 50 basis points cut [3][4] - The Fed's preferred gauge of inflation, Personal Consumption Expenditures (PCE), is set to be released, with expectations for a year-over-year increase to 2.7% for August [6][7] Inflation Metrics - Core PCE is expected to remain at 2.9%, with the Fed's optimal inflation level at 2.0% [8]

Core Viewpoint - KB Home is expected to report its third-quarter fiscal 2025 results on September 24, with anticipated declines in earnings and revenues compared to the previous year [1][3]. Earnings and Revenue Estimates - The adjusted earnings per share (EPS) estimate for the third quarter is $1.50, reflecting a 26.5% decline from $2.04 in the same quarter last year [3][8]. - Total revenues are projected at $1.60 billion, indicating an 8.9% decrease from the prior year's $1.75 billion [3][8]. Revenue Trends - A decline in home deliveries and average selling price (ASP) is expected to contribute to the revenue drop, attributed to high mortgage rates and new tariff regime risks [4][5]. - Housing revenues are anticipated to range between $1.5 billion and $1.7 billion, with ASP projected between $470,000 and $480,000, down from $480,900 year-over-year [5][6]. Margin Expectations - The adjusted housing gross margin is expected to be between 18.1% and 18.7%, significantly lower than the 20.7% reported in the previous year [7][9]. - The homebuilding adjusted operating margin is projected to be between 7.6% and 8.2%, down from 10.9% year-over-year [9]. Orders and Backlogs - New orders are expected to rise by 6.5% to 3,286 units, while the backlog is projected to decrease to 4,653 units from 5,724 units in the prior year [11][8]. Earnings Prediction - The model indicates a potential earnings beat for KB Home, supported by a positive Earnings ESP of +1.40% and a Zacks Rank of 2 (Buy) [12][13].

Economic Data Releases - This week will see the release of key economic indicators including the personal consumption expenditures price index, purchasing managers indexes, and home sales numbers [1] Company Earnings Reports - Companies such as CarMax, Cintas, and KB Home are scheduled to report their earnings this week [1]

Group 1 - The U.S. Federal Reserve has lowered its benchmark interest rate for the first time since December, indicating that more cuts may follow to support a struggling labor market [1][10] - The Fed's rate cut is expected to benefit interest-rate sensitive sectors, particularly small-cap stocks and consumer discretionary shares, with homebuilders being a notable beneficiary [2][10] - The S&P 500 reached record high levels, up over 13% year-to-date, following the Fed's decision to cut the benchmark rate by 0.25 percentage points to the 4-4.25% range [2][11] Group 2 - The PHLX Housing index has increased by 15% this quarter, outperforming the S&P 500's gain of over 7%, although it still lags behind on a year-to-date basis [5][11] - Major homebuilders such as DR Horton, KB Home, and Toll Brothers have seen significant gains, with DR Horton up over 30% and both KB Home and Toll Brothers up over 20% this quarter [5][11] - Home improvement retailers Lowe's and Home Depot have also performed well, with increases of approximately 20% and 13% respectively this quarter [5][11] Group 3 - The contract rate on a 30-year fixed-rate mortgage has fallen to 6.39%, the lowest since early October 2024, with projections suggesting it could approach 6% by year-end [6][11] - The housing market is currently facing challenges, with single-family homebuilding dropping to a near 2.5-year low in August, indicating weakness in the sector [11] - Investors are hopeful that lower mortgage rates could revitalize the housing market, with a target of bringing rates down to the 5% range being seen as crucial [7][11] Group 4 - The relationship between the Fed funds rate and mortgage rates is complex, as mortgage rates are more closely tied to the 10-year U.S. Treasury yield, which was around 4.13%, down from 4.6% in May [8][11] - Upcoming economic data, including existing and new home sales, will provide further insights into the housing market, with a good housing turnover being beneficial for overall economic activity [9][11] - The Fed's approach to rate reductions remains uncertain due to persistent inflation, which could lead to volatility in economic data related to the labor market and inflation [9][11]

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