Shares of homebuilder KB Home (NYSE:KBH) gained in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $2.15, which beat analysts’ consensus estimate of $1.80 per share. Interestingly, it’s worth noting that KBH has now beaten earnings estimates eight times during the past nine quarters (including today’s results), as pictured below:
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Sales decreased by 3.4% year-over-year, with revenue hitting $1.71 billion. This beat analysts’ expectations of $1.653 billion. In addition, KBH saw net orders rise by 2% to 3,997 homes, while deliveries decreased from 3,666 to 3,523 homes. As a result, the company’s remaining backlog of 6,270 homes equates to a value of $3.12 billion.
Looking forward, management now expects FY 2024 Housing revenues to be between $6.70 billion and $6.90 billion, with an average sales price of $485,000 to $495,000.
KBH Repurchases Shares
During the second quarter, KBH repurchased $50 million worth of shares. The firm has regularly repurchased its shares in each of the most recent quarters, as demonstrated in the image below, and has increased its buyback plan to $1 billion.
Is KBH Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on KBH stock based on three Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 38% rally in its share price over the past year, the average KBH price target of $72.85 per share implies 6.29% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
