- KB Home’s third-quarter earnings per share (EPS) were $1.61, beating estimates of $1.51 but lower than last year’s $2.04.
- The company delivered 3,393 homes, down 6.6% year-over-year, but exceeding the estimate of 3,355.
- Total revenue reached $1.62 billion, surpassing the estimate of $1.6 billion but representing a 7.5% decrease from the previous year.
- Housing revenue was $1.61 billion, which is 7.6% less than last year, although higher than the projected $1.59 billion.
- The housing gross margin fell to 18.2%, compared to 20.6% in the same quarter last year.
- Net orders were 2,950, a 4.4% decline year-over-year, missing the forecast of 2,995 orders.
- The backlog of homes stood at 4,333, a decrease of 24% from last year’s numbers, and below the anticipated 4,413.
- The financial value of the backlog fell 32% year-over-year, amounting to $1.99 billion, short of the predicted $2.15 billion.
- The average selling price of homes was $480,000, slightly higher than the expected $470,000 but 1.1% lower than last year.
- The adjusted housing gross margin was reported at 18.9%, down from 20.7% the previous year.
- Management noted the achievement of solid financial results, meeting or surpassing their guidance across key business metrics in the third quarter.
- Investment recommendations included 4 buys, 8 holds, and 4 sells.
A look at Kb Home Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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, seems to have a positive long-term outlook based on its Smartkarma Smart Scores. With a strong momentum score of 5, KB Home appears to be excelling in terms of market performance and growth potential. Additionally, the company’s value score of 4 suggests that it is viewed favorably in relation to its stock price compared to its intrinsic value, indicating a promising investment opportunity for the future.
Although KB Home’s dividend, growth, and resilience scores are not as high as its momentum and value scores, all three factors still rate a respectable 3. This indicates that while the company may not stand out significantly in these areas, it is still considered to have a solid foundation in terms of dividend payouts, growth prospects, and resilience against market challenges. With its diverse operations across multiple states in the US and additional income streams from mortgage banking, title, and insurance services, KB Home appears to be positioned well for long-term success in the housing market.
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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