KB Home (KBH) shares gapped down 5.3% in Thursday after-hours trading even after turning in better-than-feared headline results for FQ4 as the homebuilder navigated persistent challenging housing market conditions. The firm sees fiscal-year 2026 deliveries of 11K-12.5K homes (midpoint 11.25K), compared with ...

Financial Performance - Revenues for Q4 2025 totaled $1.69 billion, down from $2.00 billion year-over-year[4] - Net income for Q4 2025 was $101.5 million, compared to $190.6 million in the prior year[4] - Adjusted diluted earnings per share for Q4 2025 was $1.92, down from $2.53 year-over-year[4] - Total revenues for the three months ended November 30, 2025, were $1,694,378, a decrease of 15.3% compared to $1,999,899 in the same period of 2024[18] - Homebuilding revenues for the twelve months ended November 30, 2025, were $6,211,905, down 10% from $6,902,239 in 2024[18] - Operating income for the three months ended November 30, 2025, was $117,098, a decline of 48.9% from $229,099 in the prior year[18] - Net income for the twelve months ended November 30, 2025, was $428,789, down 34.5% from $655,018 in 2024[18] - Adjusted net income for Q4 2025 was $125,710, down 34.2% from $191,217 in Q4 2024[29] - Diluted earnings per share for Q4 2025 were $1.55, compared to $2.52 in Q4 2024[29] Sales and Deliveries - Homes delivered decreased by 9% to 3,619 units in Q4 2025[4] - Total homes delivered in Q4 2025 were 3,619, a decrease of 9.0% from 3,978 in Q4 2024[24] - Net orders for Q4 2025 totaled 2,414, down 10.2% from 2,688 in Q4 2024[24] - Total net order value for Q4 2025 was $1,099,317, a decrease of 16.5% compared to $1,316,653 in Q4 2024[24] - The company plans to deliver between 11,000 to 12,500 homes in 2026[14] Pricing and Margins - Average selling price declined by 7% to $465,600 in Q4 2025[4] - The average selling price for homes in the total market decreased to $465,600 in the three months ended November 30, 2025, from $501,000 in the same period of 2024[22] - Adjusted housing gross profit margin for Q4 2025 was 17.8%, compared to 20.9% in Q4 2024[26] - Total housing gross profits for Q4 2025 were $285,596, down from $415,760 in Q4 2024[26] Liquidity and Capital Management - Total liquidity as of November 30, 2025, was $1.43 billion, including $228.6 million in cash[10] - The company repurchased $100.0 million of common stock in Q4 2025, totaling approximately 9.4 million shares repurchased for the year[10] - Cash and cash equivalents decreased to $228,614 as of November 30, 2025, from $597,973 in 2024, reflecting a decline of 61.8%[20] - Total assets as of November 30, 2025, were $6,680,252, down from $6,936,169 in 2024, indicating a decrease of 3.7%[20] - Total liabilities decreased to $2,779,394 as of November 30, 2025, from $2,875,553 in 2024, a reduction of 3.3%[20] Other Financial Metrics - The effective tax rate for Q1 2026 is projected to be approximately 19.0%[14] - Financial services pretax income for the twelve months ended November 30, 2025, was $34,979, down 28.4% from $48,890 in 2024[18] - The company reported a loss on early extinguishment of debt of $954 for the three months ended November 30, 2025[18] - The company incurred inventory-related charges of $13,700 in Q4 2025, compared to $912 in Q4 2024[29] Backlog - Total backlog as of November 30, 2025, was 3,128 homes valued at $1,403,352, down from 4,434 homes valued at $2,242,907 in the previous year[24]

Market Overview - The S&P 500 is rebounding after four consecutive days of declines, with technology stocks recovering due to strong demand for AI memory chips from Micron, which saw its shares surge over 12% [1] - Consumer discretionary stocks, including major tech companies like Amazon and Tesla, are performing well, alongside gains in restaurants, retail, travel, and leisure sectors, driven by easing inflationary pressures indicated by a cooler-than-expected consumer price index [1] Company Performance - Texas Roadhouse has rallied for two consecutive days, with additional shares purchased at lower levels [1] - Financial stocks have been strong performers, leading to raised price targets for Goldman Sachs ($925 from $850), Wells Fargo ($96 from $90), and Capital One ($270 from $250), although Capital One's rating has been downgraded to a 2 [1] - Capital One shares have increased approximately 20% since comments from New York Fed President John Williams regarding potential interest rate cuts, significantly outperforming the S&P 500's return of about 4% [1] Upcoming Earnings Reports - Nike, FedEx, and KB Home are set to report earnings after the market closes, while Conagra, Lamb Weston, Paychex, and Carnival Corp will report before the market opens on Friday [1] - The University of Michigan's consumer sentiment index and one-year inflation expectations will also be released [1]

KB Home (NYSE:KBH) will release earnings results for its fourth quarter after the closing bell on Thursday, Dec. 18.Analysts expect the Los Angeles, California-based company to report quarterly earnings at $1.79 per share, down from $2.52 per share in the year-ago period. The consensus estimate for KB Home's quarterly revenue is $1.66 billion, compared to $2 billion a year earlier, according to data from Benzinga Pro.On Oct. 27, KB Home announced a new $1 billion share repurchase authorization.KB Home share ...

KB Home (NYSE:KBH) will release earnings results for its fourth quarter after the closing bell on Thursday, Dec. 18.Analysts expect the Los Angeles, California-based company to report quarterly earnings at $1.79 per share, down from $2.52 per share in the year-ago period. The consensus estimate for KB Home's quarterly revenue is $1.66 billion, compared to $2 billion a year earlier, according to data from Benzinga Pro.On Oct. 27, KB Home announced a new $1 billion share repurchase authorization.KB Home share ...

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Core Insights - KB Home is set to release its quarterly earnings on December 18, 2025, with projected EPS of $1.79 and revenue of approximately $1.66 billion, facing challenges from weak demand and high mortgage rates [1][6] Financial Performance - The anticipated EPS of $1.79 for the quarter ending November 2025 represents a significant year-over-year decline of 29%, attributed to decreases in revenues, margins, and backlog [2] - Projected revenue of $1.66 billion indicates a 17.6% decrease compared to the same quarter last year, reflecting affordability issues and uneven demand impacting performance [2] Profitability and Margins - Margins are expected to contract due to higher land costs, price cuts, and concessions, which will pressure profitability [3] - Despite challenges, KBH has historically surpassed consensus earnings in three of the last four quarters, with an average surprise of 2.3% [3] Market Valuation - KBH has a price-to-earnings (P/E) ratio of approximately 8.19, indicating the market's valuation of its earnings [4] - The price-to-sales ratio stands at about 0.69, suggesting a relatively low market valuation compared to its sales [4] - The enterprise value to sales ratio is approximately 0.93, reflecting the company's total valuation in relation to its sales [4] Financial Health - The debt-to-equity ratio is approximately 0.42, indicating a moderate level of debt compared to equity [5] - A strong current ratio of about 17.90 suggests a robust ability to cover short-term liabilities with short-term assets [5]

Core Viewpoint - Analysts expect KB Home to report quarterly earnings of $1.79 per share, reflecting a year-over-year decline of 29%, with revenues projected at $1.65 billion, down 17.6% from the previous year [1]. Earnings Projections - Revisions to earnings projections are crucial for predicting investor behavior, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock performance [2]. Revenue Estimates - Total Revenues from Homebuilding are expected to be $1.64 billion, indicating a year-over-year decline of 17.6% [4]. - Financial services revenues are projected at $5.84 million, down 14.7% year-over-year [4]. Key Metrics - Backlog of Homes is estimated to be 3,400, down from 4,434 year-over-year [5]. - Homes delivered are expected to total 3,506, compared to 3,978 in the same quarter last year [5]. - Net orders are projected at 2,573, down from 2,688 in the same quarter last year [5]. Pricing and Community Metrics - Average selling price is expected to be $467.42 million, down from $501.00 million year-over-year [6]. - Ending community count is estimated at 260, slightly up from 258 year-over-year [6]. - Backlog Value is projected at $1.67 billion, down from $2.24 billion year-over-year [7]. - Average community count is expected to reach 262, compared to 256 year-over-year [7]. Operating Income and Financial Services - Operating Income from Homebuilding is projected at $139.16 million, down from $229.10 million in the same quarter last year [7]. - Financial services pretax income is expected to be $9.97 million, down from $13.10 million year-over-year [8]. Stock Performance - Over the past month, KB Home shares have returned +9%, while the Zacks S&P 500 composite has seen a -0.2% change [8].

Economic Outlook - The U.S. government is releasing delayed economic data due to a 43-day federal shutdown, with key reports including the November employment report and October retail sales numbers expected this week [1] - Economists anticipate an increase of 40,000 nonfarm jobs for November, with the unemployment rate expected to remain at 4.4%, the highest since October 2021 [1] - The November consumer price index (CPI) is expected to show year-over-year readings of 3.1% for both the headline and core rates, up from 3% in September [1] Earnings Reports - Nike is set to report earnings after Thursday's closing bell, with expectations for earnings per share (EPS) of 38 cents and revenue of $12.22 billion [1] - The focus for Nike will be on inventory management and innovation, as the company is undergoing a turnaround [1] - Other notable earnings reports include homebuilders Lennar and KB Home, which will provide insights into the housing market, and Micron, which will shed light on the semiconductor and data center sectors [1]

Core Insights - KB Home has launched two new communities, Preserve and Retreat, in the Crosswinds master plan located in Morgan Hill, California, which is characterized by its blend of small-town charm and proximity to Silicon Valley [1][3] - The new homes feature modern designs with spacious layouts, including options for up to five bedrooms and four baths, catering to contemporary living needs [1][4] - The communities offer various planned amenities such as a pool, park, children's playground, and clubhouse, enhancing the lifestyle for residents [3][5] Company Overview - KB Home is recognized as one of the largest and most trusted homebuilders in the U.S., having built nearly 700,000 homes over its 65-year history [8] - The company emphasizes building strong, personal relationships with customers, allowing for personalized home designs that reflect individual preferences [2][8] - KB Home is a leader in sustainability, achieving high energy-efficiency ratings and delivering more ENERGY STAR certified homes than any other builder [4][8] Market Position - The Preserve and Retreat communities are strategically located near major transportation routes and Silicon Valley employers, making them attractive to potential homebuyers [5] - Pricing for homes in these new communities starts from the mid $1 million range, indicating a premium market positioning [6]