- KB Home’s 4Q earnings per share (EPS) were $2.52, surpassing estimates of $2.44 and significantly higher than last year’s $1.85.
- Deliveries increased by 17% year-over-year to 3,978 homes, exceeding expectations of 3,901.
- Total revenue reached $2.00 billion, a 19% increase from the previous year, slightly above the estimated $1.99 billion.
- Housing revenue specifically was $1.99 billion, up 20% from the previous year, matching estimates.
- Housing gross margin improved slightly to 20.9%, up from 20.7% the previous year.
- Net orders surged by 41% year-over-year, reaching 2,688, outperforming the estimate of 2,554.
- The housing backlog decreased by 20% year-over-year to 4,434 homes, slightly higher than the expected 4,377.
- The value of the backlog stood at $2.24 billion, a 16% year-over-year decline, but above the estimate of $2.2 billion.
- The average selling price of homes increased by 2.8% year-over-year to $0.5 million, below the estimated $0.51 million.
- Adjusted housing gross margin was 20.9%, slightly up from 20.8% the previous year.
- The increase in revenues was attributed to faster build times, resulting in more home deliveries.
- KB Home achieved total revenues of nearly $7.0 billion in 2024, alongside diluted earnings per share of $8.45.
- Net orders grew around 40% year-over-year, showing strong buyer interest despite challenges from mortgage interest rates.
- Market analysis indicates 3 buy recommendations, 10 holds, and 4 sell ratings for KB Home’s stock.
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A look at Kb Home Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
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 builds single-family homes in the United States targeting first-time and first move-up homebuyers, has been given a positive long-term outlook based on the Smartkarma Smart Scores. With high scores in Value, Growth, and Resilience, KB Home is positioned well for the future. The company’s focus on providing value for its customers, coupled with its growth potential and ability to weather economic challenges, bodes well for its overall performance.
Although KB Home scored lower on Momentum and Dividend factors, its strengths in other areas indicate a solid foundation for long-term success. With operating divisions across multiple states in the U.S. and additional income streams from mortgage banking, title, and insurance services, KB Home appears to have a diversified business model that can sustain growth and profitability in the years to come.
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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