KB HOME Reports Q2 Earnings Results for Fiscal Year 2023

🌥️Earnings Overview

KB HOME ($NYSE:KBH) reported their earnings results for the second quarter of their fiscal year ending June 21, 2023 on May 31, 2023. Total revenue increased by 2.6% to USD 1765.3 million compared to the same period in the prior year. Unfortunately, net income decreased 21.9% to USD 164.4 million.

Share Price

As of the end of the session, KB HOME stock opened at $51.2 and closed at $52.0, up by 1.9% from the previous closing price of $51.0. This marks the third consecutive quarter of earnings growth for the company, as they continue to benefit from a strong housing market. Overall, KB HOME continues to make strides in their financials, with their earnings and stock price trending upwards. Investors are encouraged by KB HOME’s performance and have high hopes for continued success in the future quarters of Fiscal Year 2023. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Kb Home. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Kb Home. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Kb Home. More…

Key Ratios Snapshot

Some of the financial key ratios for Kb Home are shown below. More…

Analysis

At GoodWhale, we recently analyzed the financials of KB HOME. Our Risk Ratings indicate that this is a high risk investment, both on the financial and business side. In our analysis of KB HOME’s income sheet, balance sheet, and cashflow statement, we identified three risk warnings that potential investors should be aware of. To access this information, become a registered user of GoodWhale. Our analysis delivers valuable insights for investors looking to make informed decisions before committing to a high-risk investment. More…

Peers

In the homebuilding industry, KB Home competes against other large builders such as Hovnanian Enterprises Inc, Beazer Homes USA Inc, and Simonds Group Ltd. These companies compete for market share in the new home construction market by offering a variety of home types and price points to appeal to different segments of the population.

– Hovnanian Enterprises Inc ($NYSE:HOV)

Hovnanian Enterprises Inc is a homebuilding company that specializes in the construction and sale of single-family detached homes, attached homes, and condominiums in the United States. As of 2022, the company had a market capitalization of 299.28 million and a return on equity of 74.13%. The company was founded in 1959 and is headquartered in Red Bank, New Jersey.

– Beazer Homes USA Inc ($NYSE:BZH)

Beazer Homes USA Inc is a homebuilder that operates in the United States. The company has a market capitalization of $400.82 million and a return on equity of 15.8%. Beazer Homes builds and sells single-family homes, townhomes, and condominiums. The company operates in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia.

– Simonds Group Ltd ($ASX:SIO)

Simonds Group Ltd is a holding company that operates through its subsidiaries. The company’s businesses include investment holding, property development and investment, and food and beverage. Simonds Group Ltd was founded in Simonds, Australia in 1881.

Summary

KB HOME reported strong total revenue growth of 2.6% year-over-year in the second quarter of their fiscal year ending June 21, 2023. Despite this, net income decreased significantly by 21.9%. Investors should examine the details of the earnings report to determine what caused the decrease in net income and if KB HOME’s business model is still viable in the face of an increasingly competitive landscape. Furthermore, KB HOME’s stock performance should be monitored to gauge how the market is responding to these results and future expectations.