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Feb 28, 2023
KB Home Q1 2023 Earnings Report
KB Home reported solid financial results in the first quarter of 2023, with diluted earnings per share in-line with the prior-year quarter.
Key Takeaways
KB Home's first quarter 2023 results showed revenues of $1.38 billion and net income of $125.5 million. Diluted earnings per share were $1.45. The company's book value per share grew to $44.80, up 27% year over year. A new stock repurchase authorization of $500 million was approved.
Revenues of $1.38 billion were essentially the same year-over-year.
Homes delivered decreased 3% to 2,788.
Average selling price increased 2% to $494,500.
Net income of $125.5 million decreased 7%, while diluted earnings per share of $1.45 was nearly flat.
Revenue by Geographic Location
Forward Guidance
The Company is providing the following guidance for its 2023 full year:
Positive Outlook
- Housing revenues in the range of $5.20 billion to $5.90 billion.
- Average selling price in the range of $480,000 to $490,000.
- Homebuilding operating income as a percentage of revenues in the range of 10.0% to 11.0%, assuming no inventory-related charges.
- Housing gross profit margin in the range of 20.5% to 21.5%, assuming no inventory-related charges.
- Average community count up year over year in the low double-digit percentage range.
Challenges Ahead
- Selling, general and administrative expenses as a percentage of housing revenues anticipated to be approximately 10.0% to 11.0%.
- Effective tax rate of approximately 24%.
- Return on equity in the low double digits.
- Considerable interest rate and economic uncertainties
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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