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May 31, 2022
KB Home Q2 2022 Earnings Report
KB Home reported strong Q2 2022 results with increased revenues, operating income, and diluted earnings per share.
Key Takeaways
KB Home's Q2 2022 results showed significant year-over-year growth in revenues, operating income, and diluted earnings per share. Revenues increased by 19% to $1.72 billion, and diluted earnings per share grew by 55% to $2.32. The company reaffirmed its fiscal 2022 guidance, supported by an ending backlog of over $6 billion.
Revenues grew 19% to $1.72 billion.
Diluted earnings per share increased 55% to $2.32.
Homebuilding operating income grew 62% to $264.5 million with a margin of 15.4%.
Ending backlog value increased 43% to $6.12 billion.
Revenue by Geographic Location
Forward Guidance
KB Home provided guidance for the full fiscal year 2022, including housing revenues between $7.30 billion and $7.50 billion, an average selling price of approximately $500,000, and a homebuilding operating income percentage between 16.0% and 16.6%.
Positive Outlook
- Housing revenues in the range of $7.30 billion to $7.50 billion.
- Average selling price will be approximately $500,000.
- Homebuilding operating income as a percentage of revenues in the range of 16.0% to 16.6%.
- Housing gross profit margin in the range of 25.6% to 26.2%.
- Ending community count of approximately 250.
Challenges Ahead
- Effective tax rate of approximately 25%, assuming no federal energy tax credit extension is enacted.
- Sales rates are moderating from the exceptional levels the industry has experienced, as buyers process the impact of higher mortgage interest rates, as well as inflationary pressures.
- Cancellation rate as a percentage of gross orders was 17%, compared to 9%.
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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