Wall Street analysts forecast that KB Home (KBH) will report quarterly earnings of $1.45 per share in its upcoming release, pointing to a year-over-year decline of 32.6%. It is anticipated that revenues will amount to $1.5 billion, exhibiting a decline of 12.6% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections ...

Core Insights - The report highlights a nationwide housing shortage of over 4 million homes, emphasizing the growing concern of affordability for millions of Americans [1][5] - States are graded based on their housing affordability and homebuilding capabilities, with South Carolina, Iowa, and Texas receiving the highest marks [1][4] Affordability and Homebuilding Metrics - The grading system evaluates affordability through the REALTORS® Affordability Score and the percentage of median income spent on a median-priced home, while homebuilding is assessed via the permit-to-population ratio and the new construction premium [2] - Only 18 states meet the 30% income rule for housing affordability, with Texas, Florida, California, North Carolina, Georgia, Arizona, and South Carolina accounting for over half of all construction permits issued in 2024 [4] Regional Performance - The South and Midwest are leading in both affordability and homebuilding, with South Carolina achieving the highest grade of A due to proactive homebuilding efforts [5] - The Northeast and West Coast are lagging, facing high home prices and limited new construction, with Rhode Island ranking at the bottom of the list [6][7] Zoning and Regulatory Challenges - States on the coasts, such as Massachusetts, face stricter zoning regulations that hinder affordable housing development, with 76% of Massachusetts' land subject to zoning [8] State-by-State Rankings - The report provides a detailed ranking of all 50 states, with South Carolina scoring 75.2 (A), Iowa 71.6 (A-), and Texas 71.5 (A-) [9][10] - The lowest-ranked states include California (19.5, F), Hawaii (15.8, F), and New York (13.2, F), highlighting significant disparities in housing affordability and construction efforts across the U.S. [10]

NVR, Inc. (NVR) reported first-quarter 2025 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Homebuilding revenues increased year over year, while the bottom line declined from the prior-year quarter’s figure.For the quarter, the Homebuilding segment reported a modest increase in settlements and settlement prices, while new orders and average sales prices declined. The backlog weakened, and gross margins compressed due to higher lot costs and affordability pressures. Me ...

Core Viewpoint - NVR, Inc. is expected to report lower earnings in Q1 2025 despite an increase in homebuilding revenues year-over-year, driven by adjustments to high mortgage rates and a strong business model [1][4]. Financial Performance - In the last reported quarter, NVR's earnings and homebuilding revenues exceeded the Zacks Consensus Estimate by 10.7% and 3.3%, respectively, with year-over-year increases of 15% in earnings and 16% in homebuilding revenues [1]. - The consensus estimate for Q1 2025's EPS has decreased to $107.87 from $108.23, indicating a 7.3% decline from the year-ago EPS of $116.41 [2]. - Revenue for the upcoming quarter is projected at $2.37 billion, reflecting a 3.9% increase from the previous year's $2.29 billion [3]. Revenue and Orders - Homebuilding revenues, which accounted for 97.8% of total revenues in 2024, are expected to grow 4.8% year-over-year to $2.4 billion in Q1 2025 [5]. - The average selling price of settlements is anticipated to improve by 1.2% year-over-year to $454,400, with total settlements expected to rise 3.6% to 5,271 units [5]. - Total new orders are projected to increase by 8.7% year-over-year to 6,577 units, with a backlog of 11,259 units valued at $5.42 billion, up from $5.22 billion a year ago [7]. Cost and Margin Outlook - The company's bottom line is expected to decrease year-over-year due to rising building materials and labor costs, with homebuilding gross margin projected at 22%, down 250 basis points from the previous year [6]. Earnings Prediction Model - The Zacks model does not predict an earnings beat for NVR in the upcoming quarter, as the company lacks a positive Earnings ESP and a favorable Zacks Rank [8]. - NVR's Earnings ESP stands at -1.62%, and it currently holds a Zacks Rank of 4 (Sell) [9].