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Aug 31, 2022
KB Home Q3 2022 Earnings Report
Achieved record third quarter financial results with substantial year-over-year growth in revenues, margins, and diluted earnings per share.
Key Takeaways
KB Home reported record third quarter financial results, with revenues increasing by 26% to $1.84 billion and diluted earnings per share growing by 79% to $2.86. The company's operating income margin improved significantly, and the ending backlog value rose by 9% to $5.26 billion.
Revenues grew 26% to $1.84 billion.
Diluted earnings per share increased 79% to $2.86.
Homebuilding operating income grew 91% to $325.1 million, with the operating income margin increasing 610 basis points to 17.7%.
Ending backlog value increased 9% to $5.26 billion.
Forward Guidance
The Company is providing the following current guidance for its 2022 fourth quarter:
Positive Outlook
- Housing revenues in the range of $1.95 billion to $2.05 billion.
- Average selling price expected to be approximately $503,000.
- Homebuilding operating income as a percentage of revenues of approximately 16.7%, assuming no inventory-related charges.
- Housing gross profit margin in the range of 25.0% to 26.0%, assuming no inventory-related charges.
- Selling, general and administrative expenses as a percentage of housing revenues anticipated to be approximately 8.8%.
Challenges Ahead
- Effective tax rate of approximately 24%.
- Ending community count in the range of 235 to 250.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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