KB Home (KBH) Tops Q3 Earnings and Revenue Estimates

Group 1 - KB Home reported quarterly earnings of $1.61 per share, exceeding the Zacks Consensus Estimate of $1.5 per share, but down from $2.04 per share a year ago, representing an earnings surprise of +7.33% [1] - The company posted revenues of $1.62 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 1.50%, but down from $1.75 billion year-over-year [2] - Over the last four quarters, KB Home has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2 - The stock has underperformed the market, losing about 5% since the beginning of the year compared to the S&P 500's gain of 13.2% [3] - The current consensus EPS estimate for the coming quarter is $2.04 on $1.88 billion in revenues, and for the current fiscal year, it is $6.48 on $6.4 billion in revenues [7] - The Zacks Industry Rank for Building Products - Home Builders is currently in the bottom 6% of over 250 Zacks industries, indicating potential challenges for the sector [8] Group 3 - The estimate revisions trend for KB Home was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]