Overview

* KB Home ( KBH ) Q3 revenue of $1.62 bln beats analyst expectations, per LSEG data

* Diluted EPS for Q3 declines 21% but beats analyst estimates, per LSEG data

* Co repurchased $188.5 mln of common stock in Q3

Outlook

* Company sees 2025 housing revenues between $6.10 bln and $6.20 bln

* KB Home ( KBH ) expects average selling price of approximately $483,000 in 2025

* Company projects 2025 homebuilding operating income margin at 8.9%

* KB Home ( KBH ) anticipates 2025 housing gross profit margin between 19.2% and 19.3%

Result Drivers

* OPERATIONAL IMPROVEMENTS - Co made progress in reducing build times and costs, contributing to solid financial results, per CEO Jeffrey Mezger

* SALES APPROACH - Consistent sales strategy focused on offering value at transparent prices supported results

* MORTGAGE RATES - Easing mortgage interest rates improved affordability, encouraging sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.62 $1.59

Revenue bln bln (8

Analysts

)

Q3 EPS Beat $1.61 $1.5 (11

Analysts

)

Q3 Net Beat $109.83 $102.80

Income mln mln (10

Analysts

)

Q3 $131.16

Homebuil mln

ding

Operatin

g Income

Q3 18.9%

Housing

Adj.

Gross

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the homebuilding peer group is "buy."

* Wall Street's median 12-month price target for KB Home ( KBH ) is $65.00, about 4% above its September 23 closing price of $62.41

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)