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Today is Thursday, June 22, 2023.
The Early Bird Index today is 57.00.
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KB Home's February Continues
It wasn’t perfect. KB Home (NYSE: KBH) posted mixed financial results on Wednesday, which resulted in shares of the homebuilder dropping by 0.85% in after-hours trading.
Financials: KB Home reported earnings of $1.94 per share in the past quarter and revenue of $1.77 billion; both were better than expected.
Details: Net orders in the quarter went up by 1% and homes delivered grew by 6%. But the average selling price dropped by 3% and the operating income margin dropped from 15.4% to 11.5%.
Quote: “The improvement in demand we started to see in February was sustained throughout our second quarter, as we achieved monthly sequential increases in our net orders.” - Jeffrey Mezger, KB Home Chairman, President and CEO.
Outlook: KB Home expects housing revenues between $5.80 billion to $6.20 billion for the full year, which was better than expected.
Stock Price: KB Home is up 60% this year, including a 17% increase in the last 30 days.
Final Thoughts: Demand in the housing market is still strong, as KB Home and other homebuilders are seeing continued demand since February. As long as the supply of housing is low, business could be good for the company. But how long will the demand last?
Notables
Notable Earnings Today: Darden Restaurants (NYSE: DRI), Accenture (NYSE: ACN), Beyond Air (Nasdaq: XAIR), Capstone Green Energy (Nasdaq: CGRN), FactSet (NYSE: FDS), Commercial Metals (NYSE: CMC), GMS (NYSE: GMS), Methode Electronics (NYSE: MEI).
Notable IPOs Today: 60 Degrees Pharmaceuticals, Inc. Common Stock (Nasdaq: SXTP), VictoryShares Free Cash Flow ETF (Nasdaq: VFLO), Direxion Shares ETF Trust (NYSE Arca: HCMT), PIMCO ETF Trust (NYSE Arca: PYLD), Tidal Trust II (NYSE Arca: TUNE), PIMCO ETF Trust (NYSE Arca: BILZ).
Notable Equity Crowdfunding Campaigns Ending Today: Akwaaba Tea Room (Honeycomb), Tall Pines Distillery (Honeycomb).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), U.S. Current Account (8:30 a.m. ET), Existing Home Sales (10:00 a.m. ET), Fed Chair Powell Testifies (10:00 a.m. ET), Crude Oil Inventories (11:00 a.m. ET).
Ripple’s Singapore Approval Boosts XRP
Photo by Kanchanara / Unsplash
The cryptocurrency XRP, which is the native token of the crypto firm Ripple, jumped 5% as Ripple received some good news on Wednesday night.
Details: Ripple announced that it received in-principle regulatory approval in Singapore to operate in the country. The license allows Ripple to offer products and services in Singapore.
Price: XRP is up over 50% since the start of 2023.
Final Thoughts: At a time when U.S. regulators want to clamp down on crypto, it is refreshing to have other governments grant approval. Still, XRP and other cryptos are considered to be risky investments.
Logitech’s New $1 Billion Stock Buyback
The board of directors for Logitech (Nasdaq: LOGI) approved a new $1 billion stock buyback, causing shares to tick up by 1.58% in after-hours trading on Wednesday.
Definition: A stock buyback is when a company repurchases its own shares, thus increasing the price.
Final Thoughts: Logitech is down 13% in 2023. Hopefully, this new stock buyback program, which will begin in July, will help with the stock price.
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Trends to Watch
Activist Time: Elliott Seeks Ouster of NRG Energy CEO (The Wall Street Journal)
All Eyes on UPS: UPS Union Workers Seek ‘Big Raises’ in Thorny Pay Negotiations (Bloomberg)
Jab: CDC panel recommends RSV vaccines for adults ages 65 and up (NBC News)
Making Money: A Straightforward Explanation for Why Financial Giants Want to Issue a Spot Bitcoin ETF (CoinDesk)
Chipped: Intel Stock Drops Despite Plan for Cost Savings. This Is Why. (Barron’s)
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