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Nov 30, 2021
KB Home Q4 2021 Earnings Report
KB Home reported strong growth in revenues and margins, leading to a significant year-over-year increase in earnings per share.
Key Takeaways
KB Home reported a strong fourth quarter in 2021, with revenues up 40% to $1.68 billion and diluted earnings per share up 71% to $1.91. The company's operating income margin improved 310 basis points to 12.8%, and the gross margin increased to 22.3%. Net order value was up 12% to $1.77 billion, and ending backlog value grew 67% to $4.95 billion.
Revenues grew 40% to $1.68 billion.
Diluted earnings per share increased 71% to $1.91.
Operating income margin improved 310 basis points to 12.8%.
Ending backlog value grew 67% to $4.95 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 provided guidance for the full fiscal year 2022, not the first quarter. They anticipate housing revenues between $7.20 billion and $7.60 billion.
Positive Outlook
- Housing revenues in the range of $7.20 billion to $7.60 billion.
- Average selling price in the range of $480,000 to $490,000.
- Homebuilding operating income as a percentage of revenues in the range of 15.7% to 16.5%, assuming no inventory-related charges.
- Housing gross profit margin in the range of 25.4% to 26.2%, assuming no inventory-related charges.
- Selling, general and administrative expenses as a percentage of housing revenues in the range of 9.4% to 9.9%.
Challenges Ahead
- Effective tax rate of approximately 25%, assuming no federal energy tax credit extension is enacted.
- Ending community count up 20% to 25%.
- Return on equity in excess of 26%.
- Guidance assumes no inventory-related charges.
- Forward-looking statements are subject to risks and uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income