Key TakeawaysProfit and sales declined at KB Home as high borrowing costs cut into demand, forcing the company to reduce selling prices and offer concessions to buyers that cut into margins.CEO Jeffrey Mezger said a recent decline in mortgage rates has boosted orders in the beginning of the company's fiscal 2024 first quarter, which began Dec. 1.Despite falling today, shares of KB Home have jumped the past year by more than 70%.KB Home (KB) on Thursday reported a decline in sales and profits in its fiscal f ...

KB Home (NYSE:KBH) stock is slipping today, despite better-than-expected fourth-quarter results, after the homebuilding name announced a decrease in home selling prices and the number of homes delivered. Plus, Seaport Research downgraded KBH  to "neutral" from "buy." No fewer than seven other analysts lifted their price targets, however, with the highest from UBS to $82. At last glance, KBH was down 3.6% at $60.91. Shares are falling from yesterday's roughly 18-year high of $64, but have added 70.6% in the ...

KB Home (KBH) reported better-than-expected results in fourth-quarter fiscal 2023 (ended Nov 30, 2023). Both the earnings and revenues beat the Zacks Consensus Estimate. With this, the company’s earnings and revenues surpassed the consensus mark in four consecutive quarters.Shares of this leading homebuilder lost 1.1% in the after-market trading session on Jan 10.Looking forward to the first quarter and the entirety of 2024, KBH foresees enhanced conditions in the housing market and ongoing positive trends ...

Key PointsKB Home had a better-than-expected quarter and gave favorable guidance. Shares are down on the news due to valuation, but a buy-the-dip opportunity is forming. Capital returns include an 11% YTD reduction in share count, with dividends and repurchases expected to remain strong in 2024. 5 stocks we like better than KB HomeKB Home NYSE: KBH is no high-yielding or hyper-growth stock, but there is more to capital returns and shareholder value than that. Despite numerous economic headwinds and widespre ...

Financial Data and Key Metrics Changes - The company reported total revenues of $1.7 billion for Q4 2023, with diluted earnings per share of $1.85, exceeding guidance across key financial metrics [6][26] - For the full year 2023, the company delivered over 13,200 homes, generating revenues of $6.4 billion and diluted earnings above $7 per share [6][33] - The operating income margin for Q4 was 11%, while the housing gross profit margin was 20.7%, down from 23.9% in the previous year [29][30] Business Line Data and Key Metrics Changes - The company achieved over 3,400 home closings in Q4, driven by improved build times and a strong backlog [6][10] - The average selling price of homes delivered in Q4 decreased to approximately $487,000, influenced by pricing adjustments and buyer concessions [28][30] Market Data and Key Metrics Changes - The company noted improving market conditions with declining interest rates and increasing consumer confidence, alongside low resale inventory [7][8] - In the first five weeks of Q1 2024, net orders reached 904, significantly higher than 403 in the same period last year [11][12] Company Strategy and Development Direction - The company plans to continue optimizing its built-to-order model while focusing on reducing build times and increasing community count [19][39] - The strategy includes maintaining a strong backlog and managing inventory effectively to support growth through 2025 [22][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market, citing favorable demographic trends and a strong desire for homeownership among millennials and Gen Z [8][39] - The company anticipates improved housing market conditions and a forecasted revenue range of $6.4 billion to $6.8 billion for 2024 [28][33] Other Important Information - The company returned nearly $180 million to shareholders through share repurchases in 2023, with a total of approximately $750 million deployed since the repurchase initiative began [6][24] - The company ended Q4 with a backlog of over 5,500 homes valued at approximately $2.7 billion, representing about 40% of anticipated deliveries for 2024 [10][34] Q&A Session Summary Question: Impact of lower Q4 orders on full-year guidance - Management acknowledged that the slight downshift in guidance was primarily due to lower Q4 orders but remains optimistic about the potential for 2024 [41][43] Question: Expectations for gross margin consistency - Management indicated expectations for relatively flat gross margins throughout the year, influenced by current market conditions and sales rates [44][46] Question: Absorption rates and historical performance - Management expects absorption rates in 2024 to be higher than in 2023, with a target of around five homes per community per month [48][49] Question: Incentives and pricing strategies - Management confirmed that they have not significantly altered incentives and plan to reduce them as demand increases [50][52] Question: Community pricing actions and competition - Management noted that while they have raised prices in some communities, the competitive landscape is more stable compared to previous years [76][77]

Forward-Looking Statements Items in this presentation, and statements by KB Home management in relation to this presentation or otherwise, may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on current (at the time made) expectations and projections about future events and are subject to risks, uncertainties, and assumptions about our operations, economic and market factors, and the homebuilding industry, among ...

KB Home (KBH) came out with quarterly earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.69 per share. This compares to earnings of $2.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.47%. A quarter ago, it was expected that this homebuilder would post earnings of $1.38 per share when it actually produced earnings of $1.80, delivering a surprise of 30.43%.Over the last four quarters, the company has su ...

Homebuilder KB Home on Wednesday said it had seen a “meaningful” increase in orders over the first several weeks of its first quarter, after a dip in mortgage rates last month made buying a home more attractive. “We have experienced a meaningful sequential increase in our net orders for the first five weeks of our 2024 first quarter, as consumers are responding favorably to the recent decline in mortgage rates,” Chief Executive Jeffrey Mezger said in the company’s fourth-quarter earnings release. “With ...

LOS ANGELES--(BUSINESS WIRE)--KB Home (NYSE: KBH) today reported results for its fourth quarter and year ended November 30, 2023. “We ended the year with solid fourth quarter results, outperforming on key financial metrics relative to our guidance, including homes delivered that exceeded our expectations, reflecting improved build times. In addition, we generated considerable cash flow and continued to return capital to shareholders, repurchasing a significant amount of our common stock at well-below boo ...

KB Home (KBH) is slated to report fourth-quarter fiscal 2023 results (ended Nov 30) on Jan 10, after market close.In the last reported quarter, its earnings and revenues beat the Zacks Consensus Estimate by 30.4% and 8.9%, respectively. On a year-over-year basis, revenues and earnings decreased.The company’s earnings topped analysts’ expectations in 28 of the trailing 31 quarters.Trend in Estimate RevisionFor the quarter to be reported, the Zacks Consensus Estimate for earnings has decreased to $1.67 per sh ...