photovs/iStock via Getty Images KB Home (NYSE:KBH) operates as a homebuilding company in the United States. We started coverage of the company in January 2023 with an initial neutral rating, which we have maintained since then. In this time frame, the firm's stock has performed exceptionally well, substantially outpacing the broader market. Analysis history (Author) In our previous article, we highlighted the firm's strong financial performance, while raising attention to the challenging housing market and ...

KB Home (KBH) benefits from its focus on the Build-to-Order approach, a strong pricing strategy and reduced cancellation rates, accompanied by land buyout initiatives.The company recently reported impressive results in second-quarter fiscal 2024 (ended May 31, 2024). Earnings and revenues beat the Zacks Consensus Estimate. The bottom line increased on a year-over-year basis amid a revenue decline. Despite the market experiencing volatility in the quarter due to increased mortgage rates, KBH observed a notab ...

Elevated mortgage rates are deterring many potential homebuyers, as rates remain around 7%. Homebuilders are not only dealing with high mortgage rates but also facing increased costs for construction and development loans. They are struggling with persistent labor shortages and a scarcity of buildable lots. These factors combined are dampening builder confidence, making it a challenging environment for the home building industry.Key TakeawaysBuilder confidence in newly built single-family homes declined by ...

Loading...Loading...KB Home KBH posted better-than-expected earnings and sales results for its second quarter on Tuesday.KB Home reported quarterly earnings of $2.15 per share, which beat the analyst consensus estimate of $1.78. Quarterly sales came in at $1.71 billion, which beat the analyst consensus estimate of $1.651 billion, according to data from Benzinga Pro.KB Home said homes delivered were 3,523, compared to 3,666 year-over-year, and the average selling price increased to $483,000, up from $479,500 ...

KB Home (KBH) reported impressive results in the second quarter of fiscal 2024 (ended May 31, 2024). Both earnings and revenues beat the Zacks Consensus Estimate. Shares of this leading homebuilder rose 2.2% in the after-market trading session on Jun 18.On an encouraging note, earnings increased on a year-over-year basis despite a revenue decline.Leveraging the advantages of its Built to Order model, which provides buyers with choices, flexibility and affordability, the company is confident in its ability t ...

KB Home (NYSE:KBH) Q2 2024 Earnings Conference Call June 18, 2024 5:00 PM ET Company Participants Jill Peters - Senior Vice President of Investor Relations Jeffrey Mezger - Chairman and Chief Executive Officer Robert McGibney - President and Chief Operating Officer Jeff Kaminski - Executive Vice President and Chief Financial Officer Conference Call Participants John Lovallo - UBS Stephen Kim - Evercore ISI Michael Rehaut - JPMorgan Chase & Co. Anika Dholakia - Barclays Alan Ratner - Zelman & Associates Susa ...

Investor Presentation Second Quarter 2024 ...

For the quarter ended May 2024, KB Home (KBH) reported revenue of $1.71 billion, down 3.1% over the same period last year. EPS came in at $2.15, compared to $1.94 in the year-ago quarter.The reported revenue represents a surprise of +4.33% over the Zacks Consensus Estimate of $1.64 billion. With the consensus EPS estimate being $1.78, the EPS surprise was +20.79%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next ...

KB Home (KBH) came out with quarterly earnings of $2.15 per share, beating the Zacks Consensus Estimate of $1.78 per share. This compares to earnings of $1.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20.79%. A quarter ago, it was expected that this homebuilder would post earnings of $1.56 per share when it actually produced earnings of $1.76, delivering a surprise of 12.82%.Over the last four quarters, the company has s ...

Revenue Performance - Revenues for Q2 2024 totaled $1.71 billion, a decrease from $1.77 billion in Q2 2023[4] - Total revenues for the three months ended May 31, 2024, were $1,709,813, a decrease of 3.1% compared to $1,765,316 in the same period of 2023[16] - Homebuilding revenues for the three months ended May 31, 2024, were $1,701,512, down 3.2% from $1,757,846 in 2023[21] Earnings and Profitability - Diluted earnings per share increased by 11% to $2.15, reflecting a net income rise of 2% to $168.4 million[8] - Net income for the three months ended May 31, 2024, was $168,419, an increase of 2.4% from $164,442 in 2023[16] - Basic earnings per share for the three months ended May 31, 2024, were $2.21, compared to $2.00 in 2023, reflecting a 10.5% increase[16] - Homebuilding operating income margin was 11.1%, slightly down from 11.5% year-over-year[4] - Adjusted housing gross profit margin for the three months ended May 31, 2024, was 21.2%, slightly down from 21.4% in 2023[25] Orders and Deliveries - Net orders rose by 2% to 3,997, with net order value increasing by 7% to $2.03 billion[8] - Total net orders for the three months ended May 31, 2024, were 3,997, an increase of 1.5% compared to 3,936 in 2023[23] - Homes delivered in the three months ended May 31, 2024, totaled 3,523, a decrease of 3.9% from 3,666 in 2023[23] Financial Services - Financial services pretax income increased by 16% to $13.3 million, driven by higher loan originations[4] Shareholder Returns - The company repurchased 764,742 shares for a total cost of $50 million in Q2 2024, with a total of $100 million spent in the first half of 2024[12] - The company plans to increase its quarterly cash dividend to $0.25 per share from $0.20 per share[12] Guidance and Outlook - Guidance for full-year 2024 includes revenues between $6.70 billion and $6.90 billion, with an average selling price range of $485,000 to $495,000[12] Asset and Liquidity Position - Total liquidity as of May 31, 2024, was $1.73 billion, including $643.5 million in cash[8] - Total assets as of May 31, 2024, were $6,805,680, an increase from $6,648,362 as of November 30, 2023[19] Backlog and Inventory - Backlog homes as of May 31, 2024, totaled 6,270 with a value of $3,122,135, compared to 7,286 homes valued at $3,456,693 in 2023, indicating a decrease in both homes and value[23] Non-GAAP Financial Measures - Adjusted housing gross profit margin is a non-GAAP financial measure calculated by dividing housing revenues less housing construction and land costs by housing revenues[26] - The Company believes adjusted housing gross profit margin is relevant for evaluating performance as it isolates the impact of housing inventory impairment and land option contract abandonment charges[26] - This financial measure assists management in making strategic decisions regarding community location, product mix, product pricing, and construction pace[26]