KB Home (KBH) stock gained about 11% in yesterday’s extended trading session after reporting strong fourth-quarter results that beat analysts’ expectations for both revenue and earnings. The homebuilder benefited from a significant growth in home orders and deliveries, due to improved housing market conditions. Further, the company provided an upbeat outlook for 2025.
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In more detail, the company reported EPS of $2.52, up 36.2% year-over-year, and surpassed the consensus estimates of $2.44. Moreover, revenue jumped 19% year-over-year to $2 billion and beat the Street’s expectations of $1.99 billion.
In addition, KB Home delivered 3,978 homes during the quarter, a 17% increase compared to the same period last year. Also, the average selling price of these homes rose 3% to $501,000. Further, net home orders grew 41% year-over-year to 2,688 in Q4.
KBH Provides Optimistic 2025 Guidance
Looking ahead, KB Home anticipates strong growth in 2025. The company projects full-year housing revenues between $7 billion and $7.5 billion, with an average selling price ranging from $488,000 to $498,000.
KB Home plans to keep growing its business. In 2024, the company spent more than $2.8 billion on buying and developing land and plans to spend even more in 2025. These investments should help meet demand for affordable homes in the future.
Is KBH a Good Stock to Buy?
Turning to Wall Street, KBH has a Hold consensus rating based on two Buys, three Holds, and two Sells assigned in the last three months. At $81.29, the average KB Home price target implies a 28.86% upside potential. Shares of the company have declined about 21% over the past three months.
