NYSE$KBH

KB Home · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

KB Home's financial performance for Q4 2022 showed revenue growth and increased earnings per share.

KB Home reported a 16% increase in revenue, reaching $1.94 billion, and a 29% increase in diluted earnings per share to $2.47 for the fourth quarter of 2022. The company's book value per share rose by 27% to $43.59, and the full-year return on equity increased by 470 basis points to 24.6%.

  • Revenues grew by 16% to $1.94 billion.
  • Diluted earnings per share increased by 29% to $2.47.
  • Homebuilding operating income grew by 30% to $278.2 million.
  • Ending backlog value decreased 25% to $3.69 billion.

Headline financials

Total Revenue

$1.94B

Previous: $1.68B+15.8%
EPS (adj)

$2.47

Previous: $1.91+29.3%
Total ASP

$510K

Previous: $451K+13.1%
West Coast ASP

$737K

Previous: $691K+6.6%
Southwest ASP

$440K

Previous: $393K+11.8%
Central ASP

$432K

Previous: $346K+25.1%
Southeast ASP

$385K

Previous: $317K+21.4%
Capital Expenditures

$11.5M

Previous: $11.2M+2.6%
Free Cash Flow

$396M

Previous: $132M+200.5%
Net Income

$216M

Previous: $174M+24.2%
Operating Income

$278M

Previous: $214M+29.8%
Gross Profit

$434M

Previous: $370M+17.1%
Cash & Equivalents

$330M

Previous: $291M+13.6%
Total Assets

$6.65B

Previous: $5.84B+14.0%
Stock-Based Comp

$6.52M

Previous: $9.14M-28.6%

Revenue & EPS history

KB Home · Revenue · Quarterly

$1.94B

Q4 2022+15.8%vs Q4 2021
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 first quarter: •Housing revenues in the range of $1.25 billion to $1.40 billion. •Average selling price in the range of $490,000 to $500,000. •Homebuilding operating income as a percentage of revenues in the range of 9.5% to 10.5%, assuming no inventory-related charges. ◦Housing gross profit margin in the range of 20.0% to 21.0%, assuming no inventory-related charges. ◦Selling, general and administrative expenses as a percentage of housing revenues anticipated to be approximately 10.3% to 10.8%. •Effective tax rate of approximately 23%. •Average community count up in the range of 15% to 20%. Due to significant uncertainty and limited forward visibility regarding 2023 housing market, macroeconomic and geopolitical conditions, which are anticipated to be challenging compared to prior periods, the Company is providing guidance as to the full fiscal year only for the following: •Housing revenues in the range of $5.00 billion to $6.00 billion.

Tailwinds

  • Housing revenues in the range of $1.25 billion to $1.40 billion for Q1 2023.
  • Average selling price in the range of $490,000 to $500,000 for Q1 2023.
  • Homebuilding operating income as a percentage of revenues in the range of 9.5% to 10.5% for Q1 2023, assuming no inventory-related charges.
  • Housing gross profit margin in the range of 20.0% to 21.0% for Q1 2023, assuming no inventory-related charges.
  • Average community count up in the range of 15% to 20%.

Headwinds

  • Significant uncertainty and limited forward visibility regarding 2023 housing market.
  • Challenging macroeconomic and geopolitical conditions anticipated compared to prior periods.
  • The company is providing guidance as to the full fiscal year only for housing revenues.
  • Housing revenues in the range of $5.00 billion to $6.00 billion for FY 2023.
  • Selling, general and administrative expenses as a percentage of housing revenues anticipated to be approximately 10.3% to 10.8% for Q1 2023.

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 2022

Historical avgQ4 2022

+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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