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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]

Dec 4, 2025 4:10 PM Eastern Standard Time KB Home to Release 2025 Fourth Quarter and Full Year Earnings on December 18, 2025 Share LOS ANGELES--(BUSINESS WIRE)--KB Home (NYSE: KBH) today announced that it will release earnings for its fourth quarter and fiscal year ended November 30, 2025 after the market closes on Thursday, December 18, 2025. A live webcast of the Company's earnings conference call will be held the same day at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time. To listen to the call, go to the ...

Core Viewpoint - Morgan Stanley raised the target price for KB Home from $53 to $67 and for Lennar Corporation from $92 to $118 [1] Company Summary - KB Home's target price increased by 26.4% from $53 to $67 [1] - Lennar Corporation's target price increased by 28.3% from $92 to $118 [1]

Core Insights - KB Home has announced the grand opening of its newest community, Oasis Reserve, located in Orlando, Florida, with home prices starting from the $470,000s [1][6]. Group 1: Community Features - Oasis Reserve offers personalized new homes designed for modern living, featuring popular amenities such as modern kitchens, expansive bedroom suites, and lofts [2][4]. - The community includes one- and two-story floor plans with options for up to six bedrooms and three baths [2]. Group 2: Customer Experience - KB Home emphasizes building strong, personal relationships with customers, allowing for a unique homebuying experience where homes can be personalized according to individual preferences [3][7]. - The KB Home Design Studio provides customers with expert advice and a wide range of design choices, enhancing the personalization process [3]. Group 3: Location and Accessibility - Oasis Reserve is strategically located near the University of Central Florida and various shopping and dining options, providing residents with a convenient lifestyle [4][5]. - The community offers easy access to major highways and is close to Orlando International Airport and local employers, enhancing its appeal to potential homebuyers [5]. Group 4: Sustainability and Efficiency - KB Home focuses on innovative design and energy efficiency, with homes engineered to be ENERGY STAR certified, which is a standard met by fewer than 12% of new homes nationwide [4]. - The homes are designed to support healthier indoor environments and provide utility cost savings compared to non-certified homes [4].

Core Viewpoint - KB Home's stock performance is under scrutiny as it faces a significant year-over-year earnings decline in the upcoming earnings report, with analysts projecting earnings of $1.53 per share, a drop of 25% [2]. Group 1: Stock Performance - KB Home closed at $64.78, reflecting a +1.58% increase from the previous day, outperforming the S&P 500's gain of 0.69% [1]. - Over the past month, KB Home's stock has decreased by 0.08%, which is better than the Construction sector's loss of 3.09% and the S&P 500's loss of 0.31% [1]. Group 2: Earnings Estimates - Analysts expect KB Home to report earnings of $1.53 per share, indicating a year-over-year decline of 25% [2]. - The full-year Zacks Consensus Estimates predict earnings of $6.39 per share and revenue of $6.19 billion, representing year-over-year changes of -24.38% and -10.68%, respectively [2]. Group 3: Analyst Estimates and Rankings - Recent changes in analyst estimates for KB Home are crucial as they reflect short-term business dynamics, with positive revisions indicating optimism about profitability [3]. - The Zacks Rank system, which evaluates estimate changes, currently ranks KB Home at 4 (Sell) [5]. Group 4: Valuation Metrics - KB Home has a Forward P/E ratio of 9.98, which is lower than the industry average Forward P/E of 12.26, indicating a valuation discount [6]. - The company has a PEG ratio of 5.25, significantly higher than the industry average PEG ratio of 1.84, suggesting that the stock may be overvalued relative to its expected earnings growth [7]. Group 5: Industry Context - The Building Products - Home Builders industry, to which KB Home belongs, ranks in the bottom 13% of all industries, with a Zacks Industry Rank of 215 [8].

Core Insights - Homebuilder stocks experienced significant gains following comments from a Federal Reserve official suggesting a potential rate cut in December [2][8] - The likelihood of a rate cut has increased to approximately 70%, up from 39% the previous day, according to CME Group's FedWatch tool [3] - Major homebuilder stocks such as Builders FirstSource, D.R. Horton, and KB Home saw their shares rise by about 7% on Friday, with other related stocks also benefiting from the news [4][8] Impact on Homebuilders - A potential reduction in the Federal Reserve's benchmark interest rate could lead to lower mortgage rates, making homes more affordable and stimulating demand from homebuyers [5][7] - Despite the positive outlook, many homebuilder stocks remain in negative territory for 2025 due to a sluggish housing market and elevated mortgage rates [6] Market Reactions - The comments from Federal Reserve Bank of New York president John Williams have fueled optimism among traders, leading to a surge in homebuilder stock prices [2][4] - Stocks connected to real estate, including Zillow Group and Rocket Companies, also saw gains as a result of the increased expectations for a rate cut [4]