KB Home Down 4.32% To $26.81 After Earnings Beat

Thursday, September 22, 2022 - KB Home (KBH) reported upside earnings and downside revenues.

The consensus among analysts for KB Home was for an earnings per share (EPS) of $2.66. The firm was able to surpass those projections, reporting an EPS of $2.86, a positive surprise of $0.2 (8%). Profits rose 73% year-over-year after reporting an EPS of $1.65 in its year-ago quarter. The positive growth rate signals that the Consumer Cyclical company is performing well amid recent economic conditions.

Analyst projections for KB Home revenue came in at a consensus of $1.9 billion. Third-Quarter revenues missed estimates for $1.8 billion by $25 million (1%). The company achieved 26% growth year-over-year compared to the firm's revenue of $1.5 billion from the year-ago quarter. The higher earnings growth relative to revenue signals KB Home has improved its profit margin.

The stock is down 4.32% to $26.81 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned KB Home a Bearish Sentiment Rank from InvestorsObserver.

KB Home has performed a little below average during the past few months. Before the report, KB Home received a Long-Term Technical Rank by InvestorsObserver of 43, putting it in the bottom half of stocks. The firm set a 52-week low on June 17, 2022 at $24.78 and set a 52-week high on January 14, 2022 at $50.2.

KB Home is an American construction company that focuses on residential construction. The company builds single-family homes and communities across Arizona, California, Colorado, Florida, Nevada, Texas, North Carolina, and the Washington, D.C., area. KB Home operates in several markets and focuses on first-time and move-up homebuyers. The company follows a built-to-order model that offers personalized homes at attainable prices based on the market location. The company also invests in land acquisition and development to support future building activities.