KB Home’s Q4 earnings show a revenue increase and positive surprises in key metrics, indicating strong performance.
Los Angeles: For the quarter ending November 2024, KB Home reported a revenue of $2 billion, which is a 19.5% increase from last year. Their earnings per share (EPS) hit $2.52, up from $1.85 in the same quarter last year.
This revenue was a bit better than what analysts expected, coming in at 0.39% above the Zacks Consensus Estimate of $1.99 billion. The EPS also surprised, beating the consensus estimate of $2.45 by 2.86%.
Investors usually keep an eye on these headline numbers, but there are other metrics that give a clearer picture of how the company is really doing. These metrics help in understanding the overall performance and can guide investors in making decisions about the stock.
Here’s a quick look at how KB Home did in the latest quarter based on the metrics that analysts watch closely:
- Backlog – Units: 4,434, which is better than the average estimate of 4,370.
- Average Selling Price: $501 million, slightly below the estimated $510.41 million.
- Net Orders – Units: 2,688, surpassing the estimate of 2,528.
- Unit Deliveries – Total Homes: 3,978, compared to the expected 3,882.
- Backlog – Value: $2.24 billion, above the $2.20 billion estimate.
- Ending Community Count: 258, exceeding the estimate of 254.
- Total Revenues – Homebuilding: $1.99 billion, slightly above the $1.98 billion estimate, marking a 19.7% year-over-year increase.
- Total Revenues – Financial Services: $6.85 million, which is lower than the estimated $9.51 million, showing a 23.8% decline from last year.
- Total Revenues – Homebuilding – Housing: $1.99 billion, matching the $1.98 billion estimate, with a 20% year-over-year increase.
- Operating Income – Homebuilding: $229.10 million, slightly above the $225.80 million estimate.
- Financial Services Pretax Income: $13.10 million, below the estimated $14.36 million.
- Homebuilding Pretax Income: $234.61 million, just shy of the $235.10 million estimate.
KB Home shares have dropped 11.5% over the past month, while the S&P 500 composite has only seen a 2.2% decline. Currently, KB Home holds a Zacks Rank #4 (Sell), suggesting it might lag behind the broader market soon.
