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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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
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