KB Home (NYSE: KBH) Overview: Strategic Presence and Market Sentiment

• KB Home (NYSE:KBH) reported a strong Q2 financial performance, with earnings per share (EPS) of $1.50, surpassing the estimated $1.45.
• The company achieved revenue of approximately $1.53 billion, exceeding expectations and demonstrating its ability to outperform consensus revenue estimates.
• Despite a positive earnings report, KBH's decision to lower full-year guidance has led to a decline in its stock price, highlighting investor concerns.

KB Home (NYSE:KBH), a prominent player in the homebuilding industry, is known for constructing and selling homes across the United States. The company operates within the Zacks Building Products - Home Builders industry, competing with other major homebuilders. On June 23, 2025, KBH reported its Q2 earnings, showcasing a strong financial performance that exceeded market expectations.

KBH reported earnings per share (EPS) of $1.50, surpassing the estimated $1.45. This represents a positive surprise of 3.45%, although it is a decrease from the $2.15 per share reported in the same quarter last year. Despite this positive performance, the company's stock is experiencing a decline due to its decision to lower full-year guidance, which has unsettled investors.

In terms of revenue, KBH achieved approximately $1.53 billion, exceeding the estimated $1.51 billion by 2.30%. However, this is a decline from the $1.71 billion reported in the same quarter the previous year. The company has surpassed consensus revenue estimates three times in the last four quarters, demonstrating its ability to perform above expectations.

KBH's financial metrics indicate a relatively low valuation with a price-to-earnings (P/E) ratio of approximately 6.09 and a price-to-sales ratio of about 0.56. The company's enterprise value to sales ratio stands at 0.78, and it has a strong earnings yield of 16.41%. These figures suggest that KBH is valued modestly by the market, offering a strong return on earnings relative to its stock price.

The company's financial health is further supported by a conservative debt-to-equity ratio of 0.44 and a robust current ratio of 7.13, highlighting its strong liquidity position. Despite the recent stock price decline, KBH's financial performance and strategic direction, as discussed in its earnings call, provide valuable insights into its future potential.

• KB Home (NYSE:KBH) is expected to report a significant decline in EPS year-over-year.
• Revenue projections indicate a 12.6% decrease from the previous year, yet analyst expectations have remained stable.
• Financial metrics suggest KB Home is undervalued, with strong liquidity and a conservative debt profile.

KB Home (NYSE: KBH) is a prominent homebuilding company based in Los Angeles. It specializes in designing and building homes for first-time and move-up buyers. As a key player in the homebuilding industry, KBH competes with other major companies like Lennar Corporation and D.R. Horton. The company is set to release its quarterly earnings on June 23, 2025.

Wall Street estimates KBH's earnings per share (EPS) to be $1.45, while analysts predict a slightly higher EPS of $1.47. This marks a significant decline from the $2.15 EPS reported in the same period last year. The anticipated decrease of 32.6% year-over-year highlights the challenges KBH faces in maintaining its profitability.

Revenue projections for KBH stand at approximately $1.51 billion, consistent with Wall Street's expectations. This figure represents a 12.6% decrease from the $1.71 billion reported in the same quarter last year. Despite the decline, the consensus revenue estimate has remained unchanged over the past 30 days, indicating stability in analysts' expectations.

KBH's financial metrics reveal a relatively low valuation, with a price-to-earnings (P/E) ratio of 5.91 and a price-to-sales ratio of 0.54. These figures suggest that the market values KBH's earnings and sales modestly. The company's enterprise value to sales ratio of 0.77 indicates that its enterprise value is slightly higher than its sales.

The company's financial health is further supported by a strong earnings yield of 16.91% and a conservative debt-to-equity ratio of 0.44. Additionally, KBH boasts a robust current ratio of 7.13, highlighting its strong liquidity position. These metrics suggest that KBH is well-positioned to navigate the challenges in the homebuilding industry.

KB Home (NYSE: KBH) is a prominent homebuilding company in the United States, known for constructing a wide range of homes, from entry-level to luxury. As a key player in the housing market, KBH competes with other major builders like Lennar and D.R. Horton. The company is set to release its quarterly earnings on Tuesday, June 17, 2025, with Wall Street estimating an earnings per share (EPS) of $1.45 and projected revenue of approximately $1.51 billion.

The earnings release for the second quarter, which ended on May 31, 2025, will be available after the market closes on Monday, June 23, 2025. A live webcast of the earnings conference call will be held at 2:00 p.m. Pacific Time, or 5:00 p.m. Eastern Time, as highlighted by Business Wire. Interested parties can access the call through the Investor Relations section of the KB Home website.

KBH's financial metrics provide insight into its market valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 6.11, the company is valued relatively low compared to its earnings, suggesting potential undervaluation. The price-to-sales ratio of about 0.56 indicates that the market values its sales modestly, while the enterprise value to sales ratio of 0.78 shows that its enterprise value is slightly higher than its sales.

The company's earnings yield stands at approximately 16.38%, reflecting a strong return on earnings. This suggests that KBH is generating significant earnings relative to its stock price. Additionally, the debt-to-equity ratio of 0.44 indicates a conservative use of debt in its capital structure, which can be seen as a positive sign of financial stability.

KBH also boasts a robust current ratio of 7.13, highlighting its strong liquidity position. This means the company has ample current assets to cover its current liabilities, ensuring it can meet short-term obligations. These financial metrics collectively paint a picture of a company with solid earnings potential and a stable financial foundation.

KB Home (NYSE:KBH) shares tumbled more than 8% intra-day today after the homebuilder reported weaker-than-expected first-quarter results and issued a downward revision to its full-year revenue forecast.

For the quarter, the company posted earnings per share of $1.49, falling short of analyst expectations of $1.59. Revenue came in at $1.39 billion, missing the $1.5 billion consensus and marking a 5% year-over-year decline.

Home deliveries dropped 9% to 2,770 units, though the average selling price increased 4% to $500,700, providing a modest cushion against volume declines.

KB Home attributed the underperformance to sluggish buyer behavior, as affordability pressures and macroeconomic uncertainty continue to weigh on consumer confidence.

The company also cut its full-year 2025 revenue outlook to between $6.60 billion and $7.00 billion, down from its prior forecast, citing weaker-than-expected order activity in Q1. It now projects a full-year average selling price of $480,000 to $495,000.

KB Home (NYSE:KBH) shares tumbled more than 8% intra-day today after the homebuilder reported weaker-than-expected first-quarter results and issued a downward revision to its full-year revenue forecast.

For the quarter, the company posted earnings per share of $1.49, falling short of analyst expectations of $1.59. Revenue came in at $1.39 billion, missing the $1.5 billion consensus and marking a 5% year-over-year decline.

Home deliveries dropped 9% to 2,770 units, though the average selling price increased 4% to $500,700, providing a modest cushion against volume declines.

KB Home attributed the underperformance to sluggish buyer behavior, as affordability pressures and macroeconomic uncertainty continue to weigh on consumer confidence.

The company also cut its full-year 2025 revenue outlook to between $6.60 billion and $7.00 billion, down from its prior forecast, citing weaker-than-expected order activity in Q1. It now projects a full-year average selling price of $480,000 to $495,000.

• The consensus price target for KB Home (NYSE: KBH) has increased from $68.67 to $79 over the past three months, indicating growing optimism about the company's performance.
• A year-over-year comparison reveals an upward trend in the average price target, from $73.72 to $79, suggesting increasing confidence in KB Home's prospects.
• Despite the positive consensus, RBC Capital analyst Mike Dahl sets a more cautious price target of $55, highlighting the importance of monitoring upcoming earnings reports for further insights.

KB Home (NYSE: KBH) is a leading homebuilding company in the United States, specializing in constructing and selling various types of homes, including single-family homes, townhomes, and condominiums. The company serves a wide range of homebuyers, from first-time buyers to active adults, and operates in multiple states such as Arizona, California, and Texas. KB Home also offers financial services, including insurance and title services, to complement its homebuilding operations.

The consensus price target for KB Home's stock has shown a positive trend over the past year. Last month, the average price target was $79, reflecting a favorable outlook from analysts. This suggests potential growth or stability in the company's stock value in the short term. The increase from $68.67 three months ago indicates growing optimism about KB Home's performance or improved market conditions.

A year ago, the average price target was $73.72, and the current target of $79 highlights a noticeable upward trend. This suggests increasing confidence in KB Home's prospects over the past year. Factors such as improvements in the housing market, strong company performance, and favorable industry trends may have contributed to this positive sentiment.

Despite the positive consensus, RBC Capital analyst Mike Dahl has set a lower price target of $55 for KB Home. This indicates a more cautious outlook, possibly due to differing views on market conditions or company performance. Investors should consider this alongside the consensus target and monitor upcoming earnings reports for further insights.

KB Home is set to release its first-quarter earnings for 2025 on March 24, 2025, after the market closes. A live webcast of the earnings conference call will be available on the company's website. This event could provide valuable information on the company's financial health and future prospects, potentially impacting the stock's target price.

• The consensus price target for KB Home (NYSE: KBH) has increased from $68.67 to $79 over the past three months, indicating growing optimism about the company's performance.
• A year-over-year comparison reveals an upward trend in the average price target, from $73.72 to $79, suggesting increasing confidence in KB Home's prospects.
• Despite the positive consensus, RBC Capital analyst Mike Dahl sets a more cautious price target of $55, highlighting the importance of monitoring upcoming earnings reports for further insights.

KB Home (NYSE: KBH) is a leading homebuilding company in the United States, specializing in constructing and selling various types of homes, including single-family homes, townhomes, and condominiums. The company serves a wide range of homebuyers, from first-time buyers to active adults, and operates in multiple states such as Arizona, California, and Texas. KB Home also offers financial services, including insurance and title services, to complement its homebuilding operations.

The consensus price target for KB Home's stock has shown a positive trend over the past year. Last month, the average price target was $79, reflecting a favorable outlook from analysts. This suggests potential growth or stability in the company's stock value in the short term. The increase from $68.67 three months ago indicates growing optimism about KB Home's performance or improved market conditions.

A year ago, the average price target was $73.72, and the current target of $79 highlights a noticeable upward trend. This suggests increasing confidence in KB Home's prospects over the past year. Factors such as improvements in the housing market, strong company performance, and favorable industry trends may have contributed to this positive sentiment.

Despite the positive consensus, RBC Capital analyst Mike Dahl has set a lower price target of $55 for KB Home. This indicates a more cautious outlook, possibly due to differing views on market conditions or company performance. Investors should consider this alongside the consensus target and monitor upcoming earnings reports for further insights.

KB Home is set to release its first-quarter earnings for 2025 on March 24, 2025, after the market closes. A live webcast of the earnings conference call will be available on the company's website. This event could provide valuable information on the company's financial health and future prospects, potentially impacting the stock's target price.