Feb 29, 2024

KB Home Q1 2024 Earnings Report

KB Home reported a strong start to fiscal year 2024 with revenues up 6% and diluted earnings per share increasing 21%.

Key Takeaways

KB Home reported a strong first quarter in fiscal year 2024, with revenues increasing by 6% to $1.47 billion and diluted earnings per share growing by 21% to $1.76. Net orders surged by 55%, and the net order value increased by 58% to $1.58 billion. The company also repurchased $50 million of common stock during the quarter.

Revenues increased by 6% to $1.47 billion.

Diluted earnings per share rose by 21% to $1.76.

Net orders were up 55%, with net order value increasing by 58% to $1.58 billion.

The company repurchased $50 million of common stock.

Total Revenue
$1.47B
Previous year: $1.38B
+6.0%
EPS
$1.76
Previous year: $1.45
+21.4%
Total Backlog Value
$2.79B
Previous year: $3.31B
-15.7%
Total ASP
$480K
Previous year: $495K
-2.9%
West Coast ASP
$674K
Previous year: $687K
-1.9%
Gross Profit
$321M
Previous year: $296M
+8.6%
Cash and Equivalents
$668M
Previous year: $260M
+156.8%
Free Cash Flow
$19.1M
Previous year: $85.1M
-77.6%
Total Assets
$6.68B
Previous year: $6.51B
+2.6%

KB Home

KB Home

KB Home Revenue by Segment

Forward Guidance

The Company is providing the following guidance for its 2024 full year:

Positive Outlook

  • Housing revenues in the range of $6.50 billion to $6.90 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 10.9% to 11.3%, assuming no inventory-related charges.
  • Housing gross profit margin in the range of 21.0% to 21.4%, assuming no inventory-related charges.
  • Ending community count of about 260, up 7% year over year.

Challenges Ahead

  • Effective tax rate of approximately 23.0%.
  • Selling, general and administrative expenses as a percentage of housing revenues of approximately 10.2%.
  • The guidance assumes no inventory-related charges.
  • The average selling price may fluctuate.
  • The effective tax rate could impact net income.

Revenue & Expenses

Visualization of income flow from segment revenue to net income