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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.
KB Home
KB Home
KB Home Revenue by Geographic Location
Revenue by Geographic Location
West Coast Revenue
CapyFin.comSouthwest Revenue
CapyFin.comCentral Revenue
CapyFin.comSoutheast Revenue
CapyFin.com 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
- Soft housing market conditions
Revenue & Expenses
Visualization of income flow from segment revenue to net income