KB Home (KBH) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Sales of new single-family homes dropped 13.7% in May compared with April, according to the U.S. Census. Home builders who reported quarterly earnings recently noted high rates cutting into affordability.
I maintain my sell rating on KB Home as demand weakens, gross margins compress, and management cuts full-year guidance, confirming a challenging outlook. 2Q25 results showed homebuilding revenue down 10.4% and net orders falling 13% year-over-year, with cancellation rates rising to 16%. Spring selling season disappointed, with flat sales and declining order momentum despite price cuts, signaling persistent affordability and mortgage rate pressures.
KB Home (KBH) topped second-quarter revenue and profit estimates after the bell Monday, but cut its full-year sales forecast as the housing market remains sluggish.
KB Home (NYSE:KBH ) Q2 2025 Earnings Conference Call June 23, 2025 5:00 PM ET Company Participants Jeffrey T. Mezger - Chairman & CEO Jill S.
The home builder continued to lower its full-year guidance, spooking investors.
Calls for peace in the region from President Trump look to have been taken to heart -- if not by the mullahs in charge of Iran, then by traders in today's stock indexes.
Although the revenue and EPS for KB Home (KBH) give a sense of how its business performed in the quarter ended May 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
KB Home's business is deteriorating, with weak demand, shrinking backlog, and ongoing margin pressure due to high rates and excess inventory. Guidance was cut sharply, with revenue and earnings likely to decline further; consensus estimates remain too optimistic for 2025 and 2026. The stock trades at a discount to book value, which offers some margin of safety, but risks remain high given KBH's exposure to first-time buyers.
KB Home (KBH) came out with quarterly earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $2.15 per share a year ago.
George Tsilis reacts to KB Home (KBH) 2Q earnings as shares of the homebuilder drop after a better-than-expected top and bottom line earnings beat. However, George points to the home deliveries down 11% as a negative on the stock's price.
KB Home (KBH) shares are down ahead of its 2Q earnings report. David Trainer says his firm is more neutral on KBH compared to several of its peers, saying it "doesn't have much upside when things get better again.