KB Home Q1 Earnings: Revenue Beat, EPS Beat, Net Orders Up 55%, 'Positive Momentum' Into Q2 And More

KB Home KBH reported first-quarter financial results after the market close on Wednesday. Here’s a rundown of the results.

• Q1 Revenue: $1.47 billion, beat estimates of $1.46 billion

• Q1 EPS: $1.76, beat estimates of $1.57

Total revenues were up 6% on a year-over-year basis as the company delivered 3,037 homes in the quarter, up 9% year-over-year. Net orders were up 55% and net order value increased 58% to $1.58 billion.

Average selling price was $480,100, compared to $494,500 in the prior year’s quarter. Inventories were up 2% year-over-year to $5.24 billion.

KB Home said it repurchased $50 million worth of its common stock in the first quarter and now has $113.6 million remaining on its buyback authorization. The U.S. homebuilder ended the quarter with $1.75 billion in liquidity, including $668.1 million in cash and cash equivalents.

“Fiscal 2024 is off to a strong start, as we generated solid results in our first quarter that were either at or above the high end of our guidance ranges. Market conditions have improved since the end of our 2023 fiscal year, contributing to the significant year‐over‐year increase in our net orders for the quarter,” said Jeffrey Mezger, chairman and CEO of KB Home.

“This positive momentum in demand has continued in our 2024 second quarter to date, and we believe we are well‐positioned to capitalize on it given our commitment to offering all homebuyers the ability to personalize their home, our well-designed products and attractive price points, as well as our expanding community count.”

Outlook: KB Home sees full-year 2024 housing revenues in the range of $6.5 billion to $6.9 billion. Average selling prices for the full year are expected to settle between $480,000 and $490,000.

Management will provide guidance for the second quarter on its conference call, which is set to kick off at 5 p.m. ET.

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KBH Price Action: KB Home shares were volatile after reporting earnings. The stock was down 0.64% after hours at $69.50 at the time of publication, according to Benzinga Pro.

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