NYSE$KBH

KB Home · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

KB Home reported solid results in Q2 2024, with key metrics exceeding guidance. Net orders and order value increased, driven by resilient homebuyer demand and the Built to Order model.

KB Home reported a decrease in revenues to $1.71 billion, but diluted earnings per share increased by 11% to $2.15. Net orders were up 2% to 3,997, and net order value expanded 7% to $2.03 billion.

  • Revenues totaled $1.71 billion, compared to $1.77 billion.
  • Diluted earnings per share grew 11% to $2.15.
  • Net orders increased 2% to 3,997; net order value rose 7% to $2.03 billion.
  • Average selling price increased to $483,000, up from $479,500.

Headline financials

Total Revenue

$1.71B

Previous: $1.77B-3.1%
EPS

$2.15

Previous: $1.94+10.8%
Total ASP

$483K

Previous: $480K+0.7%
West Coast ASP

$670K

No prior period
Southwest ASP

$448K

No prior period
Central ASP

$366K

No prior period
Southeast ASP

$417K

No prior period
Capital Expenditures

-$19.8M

Previous: -$18.3M-7.8%
Free Cash Flow

$149M

Previous: $146M+1.7%
Net Income

$168M

Previous: $164M+2.4%
Operating Income

-$6.33M

Previous: -$17.8M+64.4%
Gross Profit

$12.5M

Previous: $379M-96.7%
Stock-Based Comp

$9.36M

Previous: $8.82M+6.2%

Revenue & EPS history

KB Home · Revenue · Quarterly

$1.71B

Q2 2024-3.1%vs Q2 2023
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

KB Home · $1.39B total across 1 segment · Q1 2022

  • Housing
    $1.39B+22.6%

Forward guidance

The Company is providing the following guidance for its 2024 full year:

Tailwinds

  • Housing revenues in the range of $6.70 billion to $6.90 billion.
  • Average selling price in the range of $485,000 to $495,000.
  • Homebuilding operating income as a percentage of revenues in the range of 11.0% to 11.4%, assuming no inventory-related charges.
  • Housing gross profit margin in the range of 21.1% to 21.5%, assuming no inventory-related charges.
  • Ending community count in the range of 250 to 255.

Headwinds

  • Selling, general and administrative expenses as a percentage of housing revenues of approximately 10.1%.
  • Effective tax rate of approximately 23.0%.
  • The Company's average community count for the quarter was down 4% to 243.
  • The Company’s ending backlog homes of 6,270 and ending backlog value of $3.12 billion were down 14% and 10%, respectively.
  • Revenues totaled $1.71 billion, compared to $1.77 billion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.3%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.2%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+17.2%

Q4 2021

Best reaction

-18.3%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-0.8%+6.5%
Q4 2025-8.7%-8.5%-2.3%
Q3 2025-0.1%+2.0%+1.0%
Q2 2025+2.3%+1.1%+17.2%
Q1 2025-5.2%-6.6%-12.2%
Q4 2024+6.3%+7.4%+1.2%
Q3 2024-6.2%-2.6%-10.8%
Q2 2024+0.7%+1.5%+14.9%
Q1 2024+0.6%+0.2%-10.6%
Q4 2023-0.2%-3.1%-2.6%
Q3 2023-5.0%-4.3%-12.6%
Q2 2023+1.0%+0.2%+3.1%
Q1 2023+8.0%+9.4%+13.8%
Q4 2022+0.2%+0.7%+7.2%
Q3 2022-7.2%-9.2%-4.6%
Q2 2022+11.2%+14.4%+26.6%
Q1 2022-9.0%-10.5%-14.4%
Q4 2021+17.2%+16.3%-8.5%
Q3 2021+1.3%+2.1%+1.2%
Q2 2021-6.4%-6.1%-4.0%
Q1 2021+2.4%+3.6%+10.3%
Q4 2020+3.9%+6.1%+32.6%
Q3 2020-3.8%-6.5%-6.1%
Q2 2020-13.8%-12.1%-2.5%
Q1 2020-7.8%-7.0%+13.9%
Q4 2019-3.1%-2.4%+3.0%
Q3 2019+4.1%+8.1%+16.3%
Q2 2019+6.6%+8.9%+12.6%
Q1 2019+3.6%+1.3%+7.1%
Q4 2018-0.6%-2.7%+1.7%
Q3 2018-4.0%-6.3%-22.5%
Q2 2018+9.1%+6.0%-5.5%
Q1 2018-0.7%-5.4%-11.5%
Q4 2017+12.8%+8.1%-14.0%
Q3 2017+11.6%+14.1%+25.2%
Q2 2017+5.6%+5.2%+1.6%
Q1 2017+2.6%+3.7%+6.9%
Q4 2016+2.5%+0.0%+1.8%
Q3 2016-0.5%+2.6%-1.2%
Q2 2016+2.6%+2.3%+13.3%
Q1 2016+2.3%
Q4 2015-14.5%
Q3 2015+0.5%
Q2 2015+11.4%
Q1 2015+6.5%
Q4 2014-18.3%
Q3 2014-8.2%
Q2 2014+4.5%
Q1 2014+3.0%
Q4 2013-3.6%
Q3 2013+6.3%
Q2 2013-1.3%
Q1 2013+0.9%
Q4 2012-9.0%
Q3 2012+11.6%
Q2 2012+11.1%
Q1 2012-14.4%
Q4 2011-8.4%
Q3 2011+4.9%
Q2 2011+0.6%
Q1 2011-2.3%
Q4 2010+1.5%
Q3 2010-0.2%
Q2 2010-1.1%
Q1 2009+1.3%

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