- KB Home has revised its fiscal year housing revenue forecast to a range of $6.60 billion to $7.00 billion, down from the previous forecast of $7.00 billion to $7.50 billion.
- The updated revenue forecast is also below the market estimate of $7.07 billion.
- The average selling price for homes is expected to be between $0.48 million and $0.5 million, aligning with previous expectations.
- The company’s housing gross margin forecast has been adjusted to 19.2% to 20%, from a previous range of 20% to 21%.
- For the first quarter, KB Home reported earnings per share (EPS) of $1.49, down from $1.76 year-over-year, and below the estimate of $1.58.
- Deliveries were 2,770, an 8.8% decrease year-over-year, falling short of the estimate of 2,996.
- First quarter revenue was $1.39 billion, a decrease of 5.2% year-over-year, and below the estimate of $1.5 billion.
- Housing revenue for the quarter matched overall revenue at $1.39 billion, a 4.9% decrease year-over-year.
- The housing gross margin for the quarter was 20.2%, down from 21.5% year-over-year.
- The number of net orders was 2,772, showing a 17% decline year-over-year, missing the estimate of 3,266.
- The backlog stood at 4,436, a 23% decline year-over-year, against an estimate of 4,701.
- The backlog value was $2.20 billion, a reduction of 21% year-over-year, compared to an estimate of $2.34 billion.
- The average selling price of $0.5 million marked a 4.3% year-over-year increase.
- The adjusted housing gross margin was 20.3%, down from 21.6% year-over-year.
- Company comments indicated that despite improved sales trends, revenue guidance for fiscal 2025 was lowered due to fewer net orders in the first quarter.
- Analyst recommendations for KB Home include 5 buys, 9 holds, and 3 sells.
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 specializing in building single-family homes for the American market, has a promising long-term outlook according to Smartkarma Smart Scores. With strong scores in areas such as Value and Growth, KB Home appears to be well-positioned for future success. The company’s focus on first-time and first move-up homebuyers, along with its diverse operating divisions across various states, contributes to its positive outlook. Additionally, KB Home’s additional income streams from mortgage banking, title, and insurance services provide a level of resilience for the company.
Although KB Home shows potential for value and growth, its momentum score is lower, indicating a slower pace of change or development. Despite this, the company’s overall outlook remains solid, supported by its robust performance in key areas. Investors may find KB Home attractive for its strong value proposition, growth potential, and diversified income streams within the residential construction 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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