KB Home (NYSE:KBH) Announces Earnings Results

KB Home (NYSE:KBH) announced its quarterly earnings data on Tuesday. The construction company reported $1.05 earnings per share for the quarter, beating the consensus estimate of $0.88 by $0.17, FiscalAI reports. The firm 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 7.67% and a net margin of 4.94%.The business’s revenue was down 20.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.61 earnings per share.

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 Price Performance

Shares of KB Home stock opened at $48.62 on Wednesday. KB Home has a 1 year low of $44.03 and a 1 year high of $67.57. The firm has a market cap of $2.98 billion, a price-to-earnings ratio of 16.94, a PEG ratio of 2.47 and a beta of 1.34. The company has a 50-day moving average of $54.18 and a 200 day moving average of $53.44.

KB Home Announces Dividend

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

Insider Transactions at KB Home

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

Analysts Set New Price Targets

KBH has been the subject of a number of recent analyst reports. Barclays upped their price target on shares of KB Home from $56.00 to $57.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Royal Bank Of Canada restated a “sector perform” rating and issued a $53.00 price objective on shares of KB Home in a research report on Wednesday, June 24th. Zacks Research downgraded shares of KB Home from a “hold” rating to a “strong sell” rating in a research note on Thursday, September 17th. Truist Financial dropped their target price on shares of KB Home from $56.00 to $55.00 and set a “hold” rating for the company in a report on Wednesday, September 16th. Finally, Wells Fargo & Company cut their target price on KB Home from $52.00 to $50.00 and set an “underweight” rating on the stock in a research note on Friday, September 11th. Four research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $59.92.

Trending Headlines about KB Home

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

• Positive Sentiment: KB Home reported third-quarter adjusted earnings of $1.05 per share, beating the $0.88 analyst consensus. The company also repurchased $50 million of stock, and its ending backlog increased 3% in value to $2.05 billion. KB Home Reports 2026 Third Quarter Results
• Positive Sentiment: The company’s built-to-order strategy helped support profitability, with quarterly housing gross margin of 16.5%. The earnings beat and resilient backlog provide some support for the shares despite broader housing-market weakness. KB Home Q3 Earnings Top Consensus
• Neutral Sentiment: Analysts remain divided. Wells Fargo maintained a Sell rating with a $50 price target, while Bank of America reiterated Hold with a $54 target, citing softer demand and a weaker outlook. Wells Fargo Maintains Sell Rating
• Negative Sentiment: Revenue fell 20% year over year to $1.30 billion, net income dropped to $65.3 million from $109.8 million, and deliveries declined 19% to 2,732 homes. Net orders also fell 12%, signaling continued pressure from elevated mortgage rates and cautious buyers. KB Home Q3 Revenue Falls 20 Percent
• Negative Sentiment: KB Home reduced its full-year gross-margin outlook to 16.0%-16.2% from 16.1%-16.5%. Investors were also unsettled by a softer fourth-quarter and full-year sales outlook, which suggests pricing incentives and financing costs may continue to weigh on profitability. KB Home Cuts Margin Outlook

KB Home Company Profile

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.