Homebuilder KB Home (NYSE: KBH) will be reporting earnings this Monday after market hours. Here’s what investors should know.
KB Home missed analysts’ revenue expectations by 6.5% last quarter, reporting revenues of $1.39 billion, down 5.2% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is KB Home a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting KB Home’s revenue to decline 12% year on year to $1.51 billion, a further deceleration from the 3.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.46 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KB Home has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.3% on average.
Looking at KB Home’s peers in the industrials segment, only Lennar has reported results so far. It beat analysts’ revenue estimates by 1.1%, posting year-on-year sales declines of 4.4%. The stock was down 4.4% on the results.
Read our full analysis of Lennar’s earnings results here.There has been positive sentiment among investors in the industrials segment, with share prices up 3.1% on average over the last month. KB Home’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $65.83 (compared to the current share price of $51.52).
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