KB Home (KBH) Beats Q4 Earnings and Revenue Estimates

Core Insights - KB Home reported quarterly earnings of $1.92 per share, exceeding the Zacks Consensus Estimate of $1.79 per share, but down from $2.52 per share a year ago, representing an earnings surprise of +7.26% [1] - The company generated revenues of $1.69 billion for the quarter ended November 2025, surpassing the Zacks Consensus Estimate by 2.80%, compared to $2 billion in the same quarter last year [2] - KB Home has outperformed consensus EPS estimates three times over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $1.24 billion, and for the current fiscal year, it is $6.47 on revenues of $6.02 billion [7] - The trend of estimate revisions for KB Home was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Building Products - Home Builders industry is currently ranked in the bottom 12% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of monitoring these revisions [5]