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Nov 30, 2022
KB Home Q4 2022 Earnings Report
KB Home's financial performance for Q4 2022 showed revenue growth and increased earnings per share.
Key Takeaways
KB Home reported a 16% increase in revenue, reaching $1.94 billion, and a 29% increase in diluted earnings per share to $2.47 for the fourth quarter of 2022. The company's book value per share rose by 27% to $43.59, and the full-year return on equity increased by 470 basis points to 24.6%.
Revenues grew by 16% to $1.94 billion.
Diluted earnings per share increased by 29% to $2.47.
Homebuilding operating income grew by 30% to $278.2 million.
Ending backlog value decreased 25% to $3.69 billion.
Revenue by Geographic Location
Forward Guidance
The Company is providing the following guidance for its 2023 first quarter: •Housing revenues in the range of $1.25 billion to $1.40 billion. •Average selling price in the range of $490,000 to $500,000. •Homebuilding operating income as a percentage of revenues in the range of 9.5% to 10.5%, assuming no inventory-related charges. ◦Housing gross profit margin in the range of 20.0% to 21.0%, assuming no inventory-related charges. ◦Selling, general and administrative expenses as a percentage of housing revenues anticipated to be approximately 10.3% to 10.8%. •Effective tax rate of approximately 23%. •Average community count up in the range of 15% to 20%. Due to significant uncertainty and limited forward visibility regarding 2023 housing market, macroeconomic and geopolitical conditions, which are anticipated to be challenging compared to prior periods, the Company is providing guidance as to the full fiscal year only for the following: •Housing revenues in the range of $5.00 billion to $6.00 billion.
Positive Outlook
- Housing revenues in the range of $1.25 billion to $1.40 billion for Q1 2023.
- Average selling price in the range of $490,000 to $500,000 for Q1 2023.
- Homebuilding operating income as a percentage of revenues in the range of 9.5% to 10.5% for Q1 2023, assuming no inventory-related charges.
- Housing gross profit margin in the range of 20.0% to 21.0% for Q1 2023, assuming no inventory-related charges.
- Average community count up in the range of 15% to 20%.
Challenges Ahead
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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