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

KB Home (NYSE:KBH) issued 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. KB Home had a net margin of 4.94% and a return on equity of 7.67%. The company had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same period last year, the company posted $1.61 EPS. KB Home’s revenue was down 20.0% on a year-over-year basis.

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 KBH opened at $48.62 on Wednesday. The company has a market cap of $2.98 billion, a P/E ratio of 16.94, a PEG ratio of 2.47 and a beta of 1.34. KB Home has a 12 month low of $44.03 and a 12 month high of $67.57. The stock has a fifty day moving average price of $54.18 and a 200 day moving average price of $53.44.

KB Home Dividend Announcement

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

Insider Activity 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 sale, the director owned 9,157 shares of the company’s stock, valued at $521,582.72. The trade was a 30.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Albert Praw sold 22,015 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the transaction, the executive vice president owned 104,062 shares in the company, valued at approximately $6,108,439.40. This trade represents a 17.46% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is owned by company insiders.

Key KB Home News

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

• Positive Sentiment: KB Home reported third-quarter adjusted earnings of $1.05 per diluted share, exceeding the $0.88 analyst consensus by $0.17. Revenue of approximately $1.30 billion was broadly in line with estimates. KB Home Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company repurchased $50 million of stock during the quarter, while fourth-quarter housing revenue guidance of $1.45 billion to $1.65 billion provides a potential near-term revenue catalyst. Backlog value also increased 3% year over year to $2.05 billion. KB Home Reports 2026 Third Quarter Results
• Neutral Sentiment: The earnings beat was supported by performance relative to reduced expectations, but key operating metrics were mixed. Deliveries declined 19% to 2,732 homes and net orders fell 12% to 2,604, while backlog value grew despite the lower volume. Compared to Estimates, KB Home Q3 Earnings
• Negative Sentiment: Revenue fell 20% year over year to $1.30 billion, net income dropped to $65.3 million from $109.8 million, and EPS declined from $1.61 to $1.05. Housing gross margin also contracted to 16.5% from 18.2%. KB Home Q3 Revenue Falls 20%
• Negative Sentiment: KB Home lowered its full-year gross profit margin outlook to 16.0%-16.2%, from 16.1%-16.5%, citing worsening housing conditions. Continued insider selling, including sales by senior executives, may also weigh on sentiment. KB Home Cuts Margin Outlook

Wall Street Analyst Weigh In

Several research firms have issued reports on KBH. Weiss Ratings raised shares of KB Home from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday. Citigroup reiterated a “market outperform” rating on shares of KB Home in a report on Thursday, September 10th. Barclays increased their price objective on KB Home from $56.00 to $57.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Wells Fargo & Company reduced their price objective on KB Home from $52.00 to $50.00 and set an “underweight” rating on the stock in a report on Friday, September 11th. Finally, Citizens Jmp reaffirmed a “market outperform” rating and set a $77.00 target price on shares of KB Home in a research report on Thursday, September 10th. Four analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, KB Home has a consensus rating of “Hold” and a consensus price target of $59.92.

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.