- KB Home reported earnings per share (EPS) of $1.55, a significant decrease from $2.52 in the same period last year, and below the estimate of $1.79.
- The company delivered 3,619 homes in the quarter, a 9% decline from the previous year but slightly higher than the estimated 3,511.
- Total revenue for the quarter was $1.69 billion, down 15% year-over-year, but it exceeded the estimated $1.66 billion.
- Housing revenue came in at $1.68 billion, which also shows a decrease of 15% year-over-year, yet surpassed the estimate of $1.64 billion.
- The housing gross margin fell to 17%, compared to 20.9% a year earlier.
- Net orders were recorded at 2,414, marking a 10% drop from the previous year and missing the estimate of 2,623.
- The backlog of homes decreased by 29% year-over-year to 3,128, which was below the expected 3,450.
- The financial value of the backlog fell 37% year-over-year to $1.40 billion, missing the estimate of $1.61 billion.
- Average selling price per home was consistent with the estimate at $0.47 million but showed a 7.1% decline from the previous year.
- The adjusted housing gross margin was 17.8%, down from 20.9% last year.
- Analyst recommendations include 4 buys, 9 holds, and 3 sells for the company’s stock.
Kb Home on Smartkarma
Analyst coverage of KB Home on Smartkarma has been positive, with Baptista Research publishing an insightful report titled “KB Home: An Insight Into its Optimized Asset Mix, Pricing Strategy & Other Major Drivers!“. The report covers KB Home’s third-quarter financial results for fiscal year 2025, highlighting the company’s strong performance in delivering over $1.6 billion in total revenues. The report also emphasizes KB Home’s ability to manage costs effectively, as evidenced by a diluted earnings per share of $1.61 and an impressive gross margin of 18.9%.
A look at Kb Home Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
KB Home, a company that constructs single-family homes in the United States, is positioned well for the long term based on its Smartkarma Smart Scores. The company scores high in value and momentum, indicating a solid foundation and positive market sentiment. With moderate scores in dividend, growth, and resilience, KB Home shows stability and potential for consistent performance in the housing market. This suggests a promising outlook for investors seeking a balanced investment in the housing sector.
KB Home’s diverse operations across multiple states, along with its additional revenue streams from mortgage banking, title, and insurance services, contribute to its overall strength and resilience. The Smartkarma Smart Scores reflect a company with a strong market position and solid growth prospects, positioning KB Home as an attractive long-term investment opportunity in the housing industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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