KB Home's earnings call revealed strong financial performance, with significant growth in revenue and strategic investments in land. Although there were some challenges with gross margins and regional market conditions, the overall outlook remains positive due to improved build times, effective capital allocation, and strong stock repurchase activities.

Company Guidance

During the KB Home Q3 2024 earnings call, the company provided detailed guidance for the remainder of the fiscal year and initial projections for 2025. Jeff Mezger, CEO, highlighted strong financial performance with an achievement of $1.75 billion in total revenues and a gross margin of 20.6% for the quarter. Looking forward, the company anticipates ending 2024 with approximately $6.9 billion in revenues, with a gross margin exceeding 21% and diluted earnings per share above $8. The operating income margin is expected to range between 11.4% and 11.8% in the fourth quarter. For 2025, KB Home projects revenues of about $7.5 billion, driven by anticipated improvements in community count and absorption rates. The company also noted a significant increase in land investment, with $845 million spent in Q3, and a 21% increase in lots controlled year-over-year. Additionally, they plan to continue share repurchases, having bought back $150 million worth of shares in Q3, aiming to enhance shareholder value alongside operational growth.

Revenue Growth and Earnings

KB Home achieved double-digit year-over-year growth in revenues and diluted earnings per share in the third quarter. The company is on track to achieve $6.9 billion in revenues for 2024 with a gross margin exceeding 21%.

Increased Land Investments

KB Home invested $845 million in land acquisition and development in the third quarter, an increase of over 50% year-over-year, positioning the company for future growth.

Improvement in Build Times

Build times improved to about 150 days, a 2-week improvement sequentially, with a focus on reducing them further to enhance affordability and expand reach.

Operating Income and Cash Flow

The homebuilding operating income for the third quarter increased to $189 million, with an operating income margin of 10.8%. The company generated robust cash flow, investing significantly in land and returning $168 million to stockholders.

Stock Repurchases

KB Home repurchased roughly 1.9 million shares of its common stock at a total cost of $150 million in the third quarter, contributing to a 13% increase in diluted earnings per share.

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KB Home (KBH) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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KBH Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 09, 2025	2024 (Q4)	2.45 / -	1.85	―	―	―
Sep 24, 2024	2024 (Q3)	2.06 / 2.04	1.8	13.33% (+0.24)
Jun 18, 2024	2024 (Q2)	1.80 / 2.15	1.94	10.82% (+0.21)
Mar 20, 2024	2024 (Q1)	1.57 / 1.76	1.45	21.38% (+0.31)
Jan 10, 2024	2023 (Q4)	1.70 / 1.85	2.47	-25.10% (-0.62)
Sep 20, 2023	2023 (Q3)	1.43 / 1.80	2.86	-37.06% (-1.06)
Jun 21, 2023	2023 (Q2)	1.33 / 1.94	2.32	-16.38% (-0.38)
Mar 22, 2023	2023 (Q1)	1.13 / 1.45	1.47	-1.36% (-0.02)
Jan 11, 2023	2022 (Q4)	2.86 / 2.47	1.91	29.32% (+0.56)
Sep 21, 2022	2022 (Q3)	2.67 / 2.86	1.6	78.75% (+1.26)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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KBH Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Sep 24, 2024	$87.15	$82.49	-5.35%
Jun 18, 2024	$67.60	$69.53	+2.86%
Mar 20, 2024	$69.19	$67.94	-1.81%
Jan 10, 2024	$62.36	$61.59	-1.23%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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