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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.
Revenue by Geographic Location
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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