KB Home (NYSE:KBH) is scheduled to report its fiscal second-quarter 2024 results on June 18, after the market closes. The housing market headwinds, including high mortgage rates, supply-chain issues, and elevated material costs, are likely to have dampened the company’s Q2 performance.
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KB Home constructs and sells energy-efficient residential properties across the United States.
According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts bearish on KBH stock expect gross margins to decline in Q2.
KBH – Q2 Expectations
Wall Street expects KB Home to report sales of $1.65 billion in Q2, down 6.8% year-over-year. Further, the company is expected to post earnings of $1.80 per share, reflecting a decrease of 7.2% from the year-ago quarter.
Interestingly, KBH has a decent earnings surprise history. The company exceeded earnings expectations in 12 of the previous 15 quarters, indicating it has the potential to outperform estimates again in the to-be-reported quarter.
Options Traders Anticipate a Considerable Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you. Indeed, it currently says that options traders are expecting a considerable 7.35% move in either direction.
What is the KBH Forecast?
Turning to Wall Street, analysts have a Hold consensus rating based on three Buys, 10 Holds, and one Sell assigned in the past three months. After a 14.1% rally in its share price over the past six months, the analysts’ average price target on KBH stock of $72.85 implies 6.5% upside potential.
