NYSE$KBH

KB Home · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

KB Home reported a decrease in revenues but an increase in net orders and backlog value for Q4 2020.

KB Home reported a decrease in total revenues for the fourth quarter of 2020, but experienced a significant increase in net orders and backlog value. The company's gross margin expanded, and diluted earnings per share were reported at $1.12. The company is optimistic about 2021, expecting higher revenue and earnings.

  • Total revenues decreased by 23% to $1.19 billion due to the impact of the COVID-19 pandemic.
  • Diluted earnings per share were $1.12, compared to $1.31 in the prior year.
  • Gross margin expanded to 20.0%, up 40 basis points year-over-year.
  • Net order value rose 50%, and backlog value increased 63% to $3.0 billion.

Headline financials

Total Revenue

$1.19B

Previous: $1.56B-23.4%
EPS (adj)

$1.12

Previous: $1.31-14.5%
Total ASP

$414K

Previous: $393K+5.4%
West Coast ASP

$640K

Previous: $598K+7.0%
Southwest ASP

$344K

Previous: $318K+8.1%
Central ASP

$312K

Previous: $301K+3.7%
Southeast ASP

$283K

Previous: $287K-1.6%
Capital Expenditures

$7.69M

Previous: $8.25M-6.8%
Free Cash Flow

-$26.2M

No prior period
Net Income

$106M

Previous: $123M-13.9%
Operating Income

$116M

Previous: $162M-28.8%
Gross Profit

$243M

Previous: $308M-21.2%
Cash & Equivalents

$681M

No prior period
Total Assets

$5.36B

No prior period
Stock-Based Comp

$8.76M

Previous: $3.83M+128.6%

Revenue & EPS history

KB Home · Revenue · Quarterly

$1.19B

Q4 2020-23.4%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

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

  • Housing
    $1.39B+22.6%

Forward guidance

KB Home anticipates significant growth in scale and profits in 2021, supported by a substantial increase in backlog and intensified land acquisition and development investments. However, this outlook could be affected materially by developments related to the COVID-19 pandemic.

Tailwinds

  • Substantial increase in backlog
  • Intensified land acquisition
  • Development investments to expand lot pipeline
  • Anticipates positive year-over-year community count comparisons beginning in the 2021 second half
  • Expects to achieve significant growth in its scale and profits in 2021

Headwinds

  • COVID-19 pandemic
  • New or more restrictive “stay-at-home” orders
  • New or revised public health requirements
  • Potential to cause further and more severe disruption of global and national economies
  • Potential to cause further and more severe disruption of U.S. housing market

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 Q4 2020

Historical avgQ4 2020

+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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