KB's "Unexpected" Loss

For some, it was unexpected. For others, not so much. Earlier in the day, KB posted a quarterly loss of $174.2 million:

"The results 'reflect the current oversupply of new and resale housing inventory, a difficult situation compounded by aggressive competition and continued weak demand,' said KB Home Chief Executive Jeffrey Mezger in the earnings release."

KB Homes joins Lennar in posting their first loss since the housing market began to unwind. Lennar's losses were forty percent higher than KB's ($174.2 M versus $244.2 M), but were distributed over more shares. Lennar lost $1.55 per share versus $2.20 per share for KB Homes.