KB Home's Q4 revenue beats expectations

Overview

• U.S. homebuilder's fiscal Q4 revenue of $1.69 bln beat analyst expectations

• Adjusted EPS for fiscal Q4 was $1.92, excluding certain charges

• Company repurchased $100 mln of common stock in fiscal Q4

Outlook

• Company expects 2026 Q1 housing revenues between $1.05 bln and $1.15 bln

• KB Home forecasts 2026 full-year deliveries between 11,000 and 12,500 homes

• Company anticipates 2026 Q1 housing gross profit margin between 15.4% and 16.0%

Result Drivers

• CHALLENGING MARKET CONDITIONS - Lower consumer confidence and elevated mortgage rates impacted home deliveries and average selling prices

• EXPENSES IMPACT - Increased SG&A expenses due to accelerated equity-based compensation and higher land costs affected margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "buy."

• Wall Street's median 12-month price target for KB Home is $65.00, about 3.3% above its December 17 closing price of $62.94

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw95nM45a

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