Zacks.com users have recently been watching KB Home (KBH) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
CNBC's Diana Olick visits KB Home's first fire resilient community in California.
I downgrade KB Home to sell due to uncertain earnings outlook amid worsening macro headwinds and poor housing demand indicators. KBH's 1Q25 earnings showed a decline in revenue, net orders, and profitability, with increased inventory and rising cancellation rates. The recovery in sales pace was driven by unsustainable price reductions, not organic demand, pressuring margins and earnings.
Shares of KB Home KBH were rising in early trading on Wednesday, after tanking in the previous session on the company's downbeat fiscal first-quarter revenues.
KBH stock tumbles on dismal first-quarter fiscal 2025 results. Read more to learn about the factors and the quarterly performance.
KB Home (NYSE:KBH) shares moved lower after the US homebuilder reported an earnings miss for the first quarter and lowered its 2025 sales guidance. For fiscal 2025, the company now expects housing revenue in the range of $6.6 billion to $7 billion, down from its previous forecast of $7 billion to $7.5 billion.
Homebuilder KB Home (NYSE:KBH) reported worse-than-expected fiscal first-quarter earnings and revenue after the close yesterday, slashing its fiscal 2025 revenue outlook as well.
KB Home (KBH) slipped off its earnings as macro headwinds pin pressure on sales. Jenny Horne talks about other factors plaguing the stock, from generational homeowning trends to persistent macro headwinds.
KB Home (NYSE:KBH ) Q1 2025 Earnings Conference Call March 24, 2025 5:00 PM ET Company Participants Jill Peters - SVP of IR Jeffrey Mezger - Chairman and CEO Robert McGibney - President and COO Jeff Kaminski - EVP and CFO Bill Hollinger - SVP and Chief Accounting Officer Conference Call Participants Matthew Bouley - Barclays Matt Johnson - UBS Stephen Kim - Evercore ISI Michael Dahl - RBC Capital Markets Michael Rehaut - JPMorgan Alan Ratner - Zelman & Associates Jay McCanless - Wedbush Sam Reid - Wells Fargo Susan Maklari - Goldman Sachs Trevor Allinson - Wolfe Research Operator Good afternoon. My name is John, and I will be your conference operator today.
Market indexes, down at or near correction territory, sprang back between 1.4% (Dow) and +2.6% (Russell 2000).
Although the revenue and EPS for KB Home (KBH) give a sense of how its business performed in the quarter ended February 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
KB Home shares have declined 10% over the past year due to affordability pressures and elevated interest rates, with Q1 results showing significant demand slowdown. The company reported weak Q1 financials, with earnings and revenue misses, a 9% drop in deliveries, and a 17% fall in net orders. Elevated interest rates and increased supply have pressured margins and demand, particularly affecting first-time buyers, leading to reduced revenue guidance and operating margins.