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

KB Home (NYSE:KBH) posted its quarterly earnings data on Tuesday. The construction company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.17, FiscalAI reports. The firm had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.30 billion. KB Home had a net margin of 4.39% and a return on equity of 6.54%. KB Home’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 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 Performance

NYSE:KBH opened at $47.32 on Thursday. The stock has a 50-day simple moving average of $54.00 and a 200 day simple moving average of $53.36. KB Home has a 52-week low of $44.03 and a 52-week high of $67.57. The company has a market cap of $2.90 billion, a PE ratio of 13.33, a PEG ratio of 2.52 and a beta of 1.34.

KB Home Dividend Announcement

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

Analysts Set New Price Targets

Several brokerages recently commented on KBH. Barclays dropped their price objective on KB Home from $57.00 to $49.00 and set an “overweight” rating on the stock in a research note on Wednesday. UBS Group restated a “buy” rating on shares of KB Home in a report on Wednesday. Citizens Jmp cut their price objective on KB Home from $77.00 to $70.00 and set a “market outperform” rating on the stock in a report on Wednesday. Wells Fargo & Company decreased their price objective on KB Home from $52.00 to $50.00 and set an “underweight” rating for the company in a research report on Friday, September 11th. Finally, Citigroup restated an “outperform” 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 given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $57.33.

Insider Activity at KB Home

In other KB Home news, EVP Albert Praw sold 22,015 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the executive vice president owned 104,062 shares of the company’s stock, valued at $6,108,439.40. This represents a 17.46% decrease in their position. The transaction 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 firm’s stock in a transaction that occurred 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 transaction, the director directly owned 9,157 shares of the company’s stock, valued at $521,582.72. This represents a 30.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 4.69% of the company’s stock.

Key Headlines Impacting KB Home

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

• Positive Sentiment: KB Home exceeded third-quarter expectations, reporting adjusted EPS of $1.05 versus the $0.88 consensus estimate. The company also repurchased $50 million of stock, which may provide some support for per-share results. KB Home Reports 2026 Third Quarter Results
• Positive Sentiment: Management forecast fourth-quarter housing revenue of $1.45 billion to $1.65 billion and ended the quarter with backlog value up 3% year over year to $2.05 billion. KB Home Fourth-Quarter Forecast and Buybacks
• Neutral Sentiment: Analyst sentiment remains mixed. Truist cut its target to $50 and assigned a Hold rating, while Barclays lowered its target to $49 but retained Overweight. Bank of America reduced its target to $54 and kept Hold; Citizens JMP cut its target to $70 but maintained Market Outperform.
• Negative Sentiment: Third-quarter revenue declined 20% to $1.30 billion, net income fell to $65.3 million from $109.8 million, deliveries dropped 19% to 2,732 homes and net orders fell 12% to 2,604. Earnings also declined to $1.05 from $1.61 a year earlier. KB Home Third-Quarter Revenue and Operating Results
• Negative Sentiment: KB Home lowered its full-year gross-margin outlook to 16.0%–16.2% from 16.1%–16.5%, signaling pressure from incentives, construction costs and slower demand. Analysts subsequently reduced forecasts, with Wells Fargo maintaining a Sell rating and a $50 target. KB Home Cuts Margin Outlook
• Negative Sentiment: Thirty-year mortgage rates climbed above 7%, increasing monthly payments and threatening new-home affordability. Broader home sales have also weakened, reinforcing concerns about orders and future revenue. Mortgage Rates Top 7 Percent

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.