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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.
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
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
- Potential to cause further and more severe disruption of U.S. housing market
Revenue & Expenses
Visualization of income flow from segment revenue to net income