Aug 31, 2024

KB Home Q3 2024 Earnings Report

Achieved strong growth in revenues and diluted earnings per share.

Key Takeaways

KB Home reported strong Q3 2024 results with a 10% increase in revenues to $1.75 billion and a 13% increase in diluted earnings per share to $2.04. Net orders were flat compared to the previous year, with improved demand in August as interest rates moderated. The company invested nearly $850 million in land acquisition and development and repurchased $150 million of common stock.

Revenues increased 10% to $1.75 billion.

Diluted earnings per share rose 13% to $2.04.

Net orders were flat compared to the prior year.

Invested nearly $850 million in land acquisition and development.

Total Revenue
$1.75B
Previous year: $1.59B
+10.5%
EPS
$2.04
Previous year: $1.8
+13.3%
Total Backlog Value
$2.92B
Previous year: $3.4B
-14.0%
Total ASP
$481K
Previous year: $466K
+3.1%
West Coast ASP
$661K
Previous year: $692K
-4.5%
Gross Profit
$360M
Previous year: $345M
+4.4%
Cash and Equivalents
$375M
Previous year: $612M
-38.7%
Free Cash Flow
-$97.4M
Previous year: $156M
-162.6%
Total Assets
$6.84B
Previous year: $6.58B
+4.0%

KB Home

KB Home

KB Home Revenue by Geographic Location

Forward Guidance

KB Home provided guidance for the full year 2024.

Positive Outlook

  • Housing revenues are expected to be in the range of $6.85 billion to $6.95 billion.
  • Average selling price is anticipated to be approximately $490,000.
  • Homebuilding operating income as a percentage of revenues is projected to be in the range of 11.1% to 11.2%, assuming no inventory-related charges.
  • Housing gross profit margin is expected to be in the range of 21.1% to 21.2%, assuming no inventory-related charges.
  • Ending community count is forecasted to be in the range of 250 to 255.

Revenue & Expenses

Visualization of income flow from segment revenue to net income