KB Home (NYSE: KBH) is slated to report third-quarter fiscal 2024 results (ended Aug. 31) on Sept. 24, after the closing bell.
In the last reported quarter, KB Home's earnings and revenues beat the Zacks Consensus Estimate by 20.8% and 4.3%, respectively. On a year-over-year basis, earnings increased 11% on 3.4% lower revenues.
The company's earnings topped analysts' expectations in 31 of the trailing 34 quarters.
KB Home Price and EPS Surprise
KB Home price-eps-surprise | KB Home Quote
How Are Estimates Placed for KBH?
For the quarter to be reported, the Zacks Consensus Estimate for earnings has remained unchanged at $2.04 per share over the past 60 days. The projected figure indicates an increase of 13.3% from the year-ago quarter's earnings of $1.80 per share.
The consensus estimate for revenues is pegged at $1.73 billion, implying growth of 8.8% from the prior-year quarter.
What the Zacks Model Unveils for KB Home
Our proven model predicts an earnings beat for KB Home this time around. This is because a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: KB Home has an Earnings ESP of +0.08%.
Zacks Rank: KB Home currently has a Zacks Rank #3.
Factors to Shape KBH's Q3 Results
Revenues: KB Home's top line in third-quarter fiscal 2024 is likely to have increased, given higher Housing revenues primarily attributable to growth in deliveries and favorable pricing. The company has been benefiting from the strong buyer demand, particularly for built-to-order homes, despite the volatility in mortgage rates.
The company's focus on personalization and its ability to offer both quick move-in and personalized homes might have helped the company drive growth. KB Home has also been utilizing mortgage buydowns as a key component of its strategy to maintain strong sales amid fluctuating mortgage rates.
Although the company has not provided an explicit forecast for its third-quarter absorption pace, the positive momentum from the fiscal second quarter — driven by strong demand, shorter build times, and strategic ...
