KB Home (NYSE:KBH) Issues Quarterly Earnings Results, Beats Estimates By $0.17 EPS

KB Home (NYSE:KBH) released its quarterly earnings results on Tuesday. The construction company reported $1.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.88 by $0.17, FiscalAI reports. The business had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.30 billion. KB Home had a return on equity of 6.54% and a net margin of 4.39%.The company’s quarterly revenue was down 20.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.61 EPS.

Here are the key takeaways from KB Home’s conference call:

• Housing conditions weakened as higher mortgage rates, persistent inflation, reduced consumer confidence, and increased resale inventory pressured traffic, orders, pricing, and affordability.
• Third-quarter results met or exceeded guidance, with $1.3 billion in housing revenue, $1.05 diluted EPS, and a 16.8% adjusted housing gross margin, though revenue and EPS declined year over year.
• KB Home’s built-to-order strategy reached 74% of deliveries, reducing inventory risk and helping margins improve sequentially; build times fell to 99 days and backlog grew year over year for the first time in four years.
• The company moderated fourth-quarter expectations, projecting average selling price of about $480,000 and gross margin of 16.0%–16.6%, citing Southern California weakness, pricing pressure, higher fuel and other costs, and less favorable geographic mix.
• Management maintained its full-year delivery and revenue outlook, cited more than 61,000 owned or controlled lots and substantial liquidity, and plans up to $50 million of additional share repurchases in the fourth quarter.

KB Home Stock Down 2.6%

NYSE KBH opened at $47.32 on Thursday. The firm has a market cap of $2.90 billion, a P/E ratio of 13.33, a price-to-earnings-growth ratio of 2.52 and a beta of 1.34. The company’s 50 day moving average is $54.00 and its 200-day moving average is $53.36. KB Home has a 12-month low of $44.03 and a 12-month high of $67.57.

KB Home Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th were paid a $0.25 dividend. The ex-dividend date was Thursday, August 6th. This represents a $1.00 annualized dividend and a dividend yield of 2.1%. KB Home’s dividend payout ratio (DPR) is presently 34.84%.

Insiders Place Their Bets

In other KB Home news, EVP Albert Praw sold 22,015 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the sale, the executive vice president owned 104,062 shares of the company’s stock, valued at $6,108,439.40. The trade was a 17.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Arthur Collins sold 4,000 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $56.96, for a total value of $227,840.00. Following the sale, the director owned 9,157 shares in the company, valued at approximately $521,582.72. This represents a 30.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.69% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. Citizens Jmp lowered their price objective on KB Home from $77.00 to $70.00 and set a “market outperform” rating for the company in a research note on Wednesday. Truist Financial decreased their price target on KB Home from $55.00 to $50.00 and set a “hold” rating for the company in a report on Wednesday. Wall Street Zen raised KB Home from a “sell” rating to a “hold” rating in a research report on Saturday, June 27th. Bank of America dropped their price objective on KB Home from $56.00 to $54.00 and set a “neutral” rating on the stock in a research note on Wednesday. Finally, UBS Group reaffirmed a “buy” rating on shares of KB Home in a report on Wednesday. Four equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $57.33.

Key KB Home News

Here are the key news stories impacting KB Home this week:

• Positive Sentiment: KB Home reported third-quarter earnings of $1.05 per diluted share, beating the $0.88 analyst consensus. The company also repurchased $50 million of stock, supporting per-share value. KB Home Reports 2026 Third Quarter Results
• Positive Sentiment: KB Home’s built-to-order business model helped protect results during a difficult housing environment. Backlog value increased 3% to $2.05 billion, while management expects fourth-quarter housing revenue of $1.45 billion to $1.65 billion. KB Home Q3 Earnings
• Neutral Sentiment: Analysts broadly lowered their price targets following the results. Truist moved to a $50 target and Hold rating, while Barclays, Bank of America and Citizens also reduced targets but retained positive, neutral or market-perform stances. Wells Fargo maintained a Sell rating with a $50 target. Analysts Slash Forecasts on KB Home
• Neutral Sentiment: A reported federal harassment and retaliation lawsuit adds a potential legal overhang, although the available reports do not indicate an immediate financial impact. Federal Harassment and Retaliation Suit
• Negative Sentiment: Management cut its full-year gross profit margin outlook to 16.0%-16.2%, from 16.1%-16.5%, citing weaker housing conditions. Revenue fell 20% year over year to $1.30 billion, net income dropped to $65.3 million, deliveries declined 19% and net orders fell 12%. KB Home Cuts Margin Outlook
• Negative Sentiment: Thirty-year mortgage rates moved above 7%, raising concerns that affordability will weaken demand for new homes and pressure builders’ sales and margins. KB Home shares have consequently declined as investors focus on the softer outlook rather than the earnings beat. Mortgage Rates Top 7 Percent

About KB Home

KB Home (NYSE: KBH) is a homebuilding company that designs, constructs and sells residential properties in the United States. Its offerings primarily include single-family homes, with communities and floor plans intended for first-time buyers, move-up buyers and other owner-occupants. The company also provides homebuyers with opportunities to personalize selected features and finishes through its build-to-order approach.

The company operates in several major housing markets across the United States, including locations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.