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Nov 30, 2020
KB Home Q4 2020 Earnings Report
KB Home reported a decrease in revenues but an increase in net orders and backlog value for Q4 2020.
Key Takeaways
KB Home reported a decrease in total revenues for the fourth quarter of 2020, but experienced a significant increase in net orders and backlog value. The company's gross margin expanded, and diluted earnings per share were reported at $1.12. The company is optimistic about 2021, expecting higher revenue and earnings.
Total revenues decreased by 23% to $1.19 billion due to the impact of the COVID-19 pandemic.
Diluted earnings per share were $1.12, compared to $1.31 in the prior year.
Gross margin expanded to 20.0%, up 40 basis points year-over-year.
Net order value rose 50%, and backlog value increased 63% to $3.0 billion.
Revenue by Geographic Location
Forward Guidance
KB Home anticipates significant growth in scale and profits in 2021, supported by a substantial increase in backlog and intensified land acquisition and development investments. However, this outlook could be affected materially by developments related to the COVID-19 pandemic.
Positive Outlook
- Substantial increase in backlog
- Intensified land acquisition
- Development investments to expand lot pipeline
- Anticipates positive year-over-year community count comparisons beginning in the 2021 second half
- Expects to achieve significant growth in its scale and profits in 2021
Challenges Ahead
- COVID-19 pandemic
- New or more restrictive “stay-at-home” orders
- New or revised public health requirements
- Potential to cause further and more severe disruption of global and national economies
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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