KB Home 3Q financial results beat estimates on steady demand, higher deliveries
Published: 16:43 20 Sep 2023 EDT
KB Home (NYSE:KBH) after Wednesday’s close reported third quarter 2023 adjusted earnings per share (EPS) of $1.80, down from $2.86 a year earlier but surpassing the analyst consensus forecast of $1.44.
Meanwhile, the homebuilder generated revenue for the period of $1.59 billion, which also exceeded estimates of $1.48 billion despite being lower than the $1.84 billion figure from a year ago.
The company attributed the results to achieving higher deliveries than its previous guidance.
"While our year-over-year comparisons reflect the record results we achieved in the prior-year quarter, we expect this quarter’s solid performance to contribute to a more profitable 2023 fiscal year than we had previously anticipated," KB Home CEO Jeffrey Mezger said in a statement.
"Demand was steady throughout the quarter, leading to a community absorption pace of 4.3 net orders per month, even though mortgage interest rates rose as the quarter progressed," he added.
The company ended the quarter with cash and cash equivalents of $612.1 million as of August 31, 2023.
For the full year 2023, KB Home anticipates housing revenues of approximately $6.31 billion, with homebuilding operating income as a percentage of revenues of about 11.3%, assuming no inventory-related charges.
Shares of KB Home eased 2% in Wednesday’s after-hours session.
Contact Sean at sean@proactiveinvestors.com
