NYSE$KBH

KB Home · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

KB Home reported strong financial results for Q3 2023, exceeding guidance ranges with increased deliveries and compressed build times.

KB Home reported Q3 2023 revenues of $1.59 billion and diluted earnings per share of $1.80. Net orders increased by 52% to 3,097. The company is increasing its investment in land acquisition to grow community count in 2024 and beyond.

  • Revenues totaled $1.59 billion, compared to $1.84 billion in the prior year.
  • Diluted earnings per share were $1.80, compared to $2.86 in the prior year.
  • Net orders increased 52% to 3,097.
  • The company repurchased 1.5 million shares for $82.5 million.

Headline financials

Total Revenue

$1.59B

Previous: $1.84B-14.0%
EPS (adj)

$1.80

Previous: $2.86-37.1%
Total ASP

$466K

Previous: $509K-8.3%
West Coast ASP

$692K

Previous: $718K-3.5%
Southwest ASP

$419K

Previous: $437K-4.1%
Central ASP

$403K

Previous: $414K-2.7%
Southeast ASP

$389K

Previous: $376K+3.6%
Capital Expenditures

-$26.4M

Previous: -$33.8M+21.8%
Free Cash Flow

$124M

Previous: $222M-44.3%
Net Income

$150M

Previous: $255M-41.3%
Operating Income

-$27M

Previous: -$26.5M-2.0%
Gross Profit

$345M

Previous: $491M-29.7%
Cash & Equivalents

$612M

Previous: $197M+210.3%
Total Assets

$6.58B

Previous: $6.73B-2.3%
Stock-Based Comp

$9.25M

Previous: $7.06M+31.1%

Revenue & EPS history

KB Home · Revenue · Quarterly

$1.59B

Q3 2023-14%vs Q3 2022
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 2023 full year:

Tailwinds

  • Housing revenues of approximately $6.31 billion.
  • Average selling price of approximately $481,000.
  • Homebuilding operating income as a percentage of revenues of about 11.3%, assuming no inventory-related charges.
  • Housing gross profit margin of approximately 21.3%, assuming no inventory-related charges.
  • Selling, general and administrative expenses as a percentage of housing revenues anticipated to be roughly 10.0%.

Headwinds

  • Effective tax rate of approximately 23%.
  • Average community count up about 9% year over year, with ending community count of approximately 230.
  • General economic, employment and business conditions
  • Conditions in the capital, credit and financial markets
  • Material and trade costs and availability, including building materials and appliances, and delays related to state and municipal construction, permitting, inspection and utility processes, which have been disrupted by key equipment shortages

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 Q3 2023

Historical avgQ3 2023

+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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