KB Home Shares Climb After Better-Than-Expected Q2 Results
Portfolio Pulse from Erica Kollmann
KB Home (NYSE:KBH) shares rose after reporting better-than-expected Q2 earnings of $2.15 per share and sales of $1.71 billion. Despite a decrease in homes delivered and backlog value, the company saw an increase in average selling price and strong net orders. KB Home's fiscal year revenue outlook is between $6.7 billion and $6.9 billion. Shares of homebuilders, including KB Home, were initially down due to Lennar Corp's (NYSE:LEN) earnings report but KB Home shares rebounded in after-hours trading.
June 18, 2024 | 8:40 pm
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NEUTRAL IMPACT
Lennar Corp's earnings report negatively impacted homebuilder stocks during regular trading, including KB Home. However, KB Home's strong Q2 results helped its shares rebound in after-hours trading.
While Lennar's earnings report had a negative impact on homebuilder stocks, KB Home's strong Q2 results mitigated this effect, leading to a neutral short-term impact on Lennar's stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
KB Home reported Q2 earnings of $2.15 per share, beating estimates by 20.79%, and sales of $1.71 billion, beating estimates by 3.57%. Despite a decrease in homes delivered and backlog value, the company saw an increase in average selling price and strong net orders. Shares rose 1.72% in after-hours trading.
The better-than-expected earnings and sales figures, along with a positive outlook, are likely to boost investor confidence in KB Home, leading to a short-term increase in stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100