KB Home Q3 Earnings Report Set for Sept 24

KB Home is set to release its third-quarter fiscal 2024 results on September 24, following a strong performance in the previous quarter where earnings and revenues exceeded expectations. Analysts predict earnings of $2.04 per share, reflecting a 13.3% increase from the same quarter last year. The company anticipates housing revenues between $1.65 billion and $1.75 billion, driven by increased deliveries and favorable pricing, with a projected average selling price of $482,000. Despite the positive outlook, KB Home expects a slight decline in housing gross margin due to concessions made to homebuyers in a challenging market last year. The company’s strategic pricing and effective inventory management have contributed to its resilience in the current housing market. SG&A expenses are expected to remain stable at 10.2%, while the adjusted operating margin is projected to decrease to 10.9%. The backlog of units is anticipated to decline to 6,062 from 7,008 units in the prior-year quarter, indicating a potential slowdown in demand. However, the positive momentum from the previous quarter suggests that the absorption pace will remain solid. Technical indicators show that KB Home's stock is trading at a discount compared to the industry, which may attract cautious investors looking for stability in a volatile market. Overall, KB Home's operational strategies and market positioning suggest a strong performance in the upcoming earnings report, although investors are advised to remain vigilant for signs of broader market trends that could impact future results.