Fiscal fourth-quarter revenue is forecast at $2.77 billion, down 0.7% sequentially but up 6.5% year over year. Adjusted EPS are forecast at $2.53, up 7.3% sequentially and by 20.3% year over year. For the full 2023 fiscal year that ended in May, estimates call for EPS of $7.95, up 7.7%, on sales of $10.48 billion, up 8.9%.
Darden stock trades at 20.9 times expected 2023 EPS, 19.1 times estimated 2024 earnings of $8.71 and 17 times estimated 2025 earnings of $9.74 per share. The 52-week trading range is $111.38 to $168.98. Darden pays an annual dividend of $4.84 (yield of 2.92%). Total shareholder return for the past year was 53.84%.
KB Home
Homebuilder KB Home (NYSE: KBH) posted its 52-week low in mid-June, and the share price has doubled since then. That may seem anomalous given the relatively high cost of mortgage loans, but KB Home’s new houses are selling better than existing homes because owners with mortgages below 4% are not moving. Still, analysts expect closings to fall by around 15% and average selling prices for new homes to slip by around 3%. The company reports quarterly results late Wednesday.
Of 16 analysts covering the stock, five have a Buy or Strong Buy rating and 10 more have Hold ratings. At a trading price of around $50.80, the shares are above their median price target of $48.50. At the high price target of $56.00, the upside potential is 9.3%.
For the company’s second quarter of fiscal 2023, analysts expect sales of $1.42 billion, up 2.9% sequentially but 17.4% lower year over year. EPS are forecast to fall by 8.6% sequentially to $1.32 and decrease by 43.1% year over year. The consensus estimate for the 2023 fiscal year ending in November calls for EPS of $5.48, down 40.2%, on sales of $5.65 billion, down 15.2%.
KB Home stock trades at 9.3 times expected 2023 EPS, 9.2 times estimated 2024 earnings of $5.50 and 8.8 times estimated 2025 earnings of $5.80 per share. The 52-week range is $25.06 to $51.29. KB Home pays an annual dividend of $0.60 (yield of 1.18%). Total shareholder return for the past 12 months is 98.42%.
Originally published at 24/7 Wall St.
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