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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.
Revenue by Geographic Location
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%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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