Here's What Key Metrics Tell Us About KB Home (KBH) Q3 Earnings
KB Home (KBH) reported $1.75 billion in revenue for the quarter ended August 2024, representing a year-over-year increase of 10.4%. EPS of $2.04 for the same period compares to $1.80 a year ago.
The reported revenue represents a surprise of +1.50% over the Zacks Consensus Estimate of $1.73 billion. With the consensus EPS estimate being $2.04, the company has not delivered EPS surprise.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how KB Home performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Backlog - Units: 5,724 compared to the 6,068 average estimate based on four analysts.
Average selling price: $480.90 million versus $486.14 million estimated by four analysts on average.
Unit deliveries - Total Homes: 3,631 versus 3,562 estimated by four analysts on average.
Net orders - Units: 3,085 versus 3,360 estimated by four analysts on average.
Backlog - Value: $2.92 billion compared to the $3.08 billion average estimate based on three analysts.
Average community count -Total: 251 versus the two-analyst average estimate of 248.
Ending community count: 254 versus the two-analyst average estimate of 247.
Total Revenues- Homebuilding: $1.75 billion compared to the $1.72 billion average estimate based on five analysts. The reported number represents a change of +10.5% year over year.
Total Revenues- Financial services: $6.63 million versus $8.20 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -9.1% change.
Total Revenues- Homebuilding- Housing: $1.75 billion versus the four-analyst average estimate of $1.72 billion. The reported number represents a year-over-year change of +11%.
Operating Income- Homebuilding: $188.95 million versus $190.12 million estimated by four analysts on average.
Financial services pretax income: $10.95 million compared to the $11.97 million average estimate based on four analysts.
View all Key Company Metrics for KB Home here>>>
Shares of KB Home have returned +3.9% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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