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Aug 31, 2021
KB Home Q3 2021 Earnings Report
Reported significant growth in revenues and earnings, driven by strong demand and improved operating efficiency.
Key Takeaways
KB Home reported a strong third quarter in 2021, with revenues up 47% to $1.47 billion and diluted earnings per share up 93% to $1.60. The company's operating income margin improved 270 basis points to 11.6%, and its gross margin expanded to 21.5%. Net order value increased 22% to $2.01 billion, and ending backlog value increased 89% to $4.84 billion. KB Home also repurchased 4.7 million shares for $188.2 million.
Revenues increased by 47% year-over-year, reaching $1.47 billion.
Diluted earnings per share grew by 93% to $1.60.
Operating income margin improved by 270 basis points to 11.6%.
Ending backlog value increased by 89% to $4.84 billion.
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 anticipates another year of profitable growth in 2022, with a meaningful expansion of return on equity further enhanced by recent share repurchases.
Positive Outlook
- Sizable increase in backlog value.
- Projected increases in community count.
- Projected increases in margins.
- Meaningful expansion of return on equity.
- Enhancement of return on equity due to recent share repurchases.
Challenges Ahead
- Ongoing industry-wide supply chain issues.
- Labor shortages extending build times.
- Impact on third quarter deliveries due to supply chain and labor issues.
- Need to work through solutions to mitigate supply chain and labor issues.
- Need to stabilize construction times.
Revenue & Expenses
Visualization of income flow from segment revenue to net income