Homebuilder KB Home (NYSE:KBH) will be reporting results this Thursday after the bell. Here’s what to expect.
KB Home beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.62 billion, down 7.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA and backlog estimates.
Is KB Home a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting KB Home’s revenue to decline 17.2% year on year to $1.66 billion, a reversal from the 19.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.79 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KB Home has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.5% on average.
Looking at KB Home’s peers in the industrials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lennar’s revenues decreased 5.8% year on year, beating analysts’ expectations by 2.6%, and Worthington reported revenues up 19.5%, topping estimates by 5.4%. Worthington traded up 12.3% following the results.
Read our full analysis of Lennar’s results here and Worthington’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 8.3% on average over the last month. KB Home is up 9% during the same time and is heading into earnings with an average analyst price target of $68 (compared to the current share price of $62.86).
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