KB Home is a leading homebuilding company that specializes in the construction and sale of residential properties in various communities across the United States
The company focuses on creating energy-efficient homes that cater to the diverse needs of homebuyers, offering a range of customizable floor plans and designs. With an emphasis on sustainability and innovation, KB Home strives to enhance the homebuying experience by providing personalized options that allow customers to create spaces that reflect their lifestyle and preferences. Additionally, the company is committed to responsible land development practices and prioritizes building homes in desirable locations that provide easy access to amenities and services.
The NAHB's Housing Market Index was expected to come in slightly weaker versus last month, falling to 45 versus 46 in December. Instead, it rose one point, which marks the highest reading since April.
Shares of homebuilder KB Home (NYSEKBH)
jumped 5% in the morning session after the company reported strong fourth-quarter results that exceeded analysts' backlog expectations. This figure is a leading indicator of revenue and a major focus of the markets. Its revenue also narrowly outperformed Wall Street's estimates. Management made constructive comments about the macro, noting that "Net orders rose roughly 40% year over year, as buyers continued to demonstrate a desire for homeownership and housing market conditions improved relative to last year". On the other hand, its EBITDA missed and its full-year revenue guidance fell slightly short of Wall Street's estimates. Zooming out, we think this was a mixed quarter. The market seemed to focus on the top-line strength, and the stock traded up.
Homebuilder KB Home (NYSEKBH) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 19.5% year on year to $2 billion. On the other hand, the company’s full-year revenue guidance of $7.25 billion at the midpoint came in 1.1% below analysts’ estimates. Its GAAP profit of $2.52 per share was 3.2% above analysts’ consensus estimates.
