Why KB Home Stock Is Sliding After-Hours – KB Home (NYSE:KBH)

KB Home (NYSE: KBH) shares are trading lower in Wednesday’s after-hours session following the release of the company’s fourth-quarter earnings report. The metrics from the report have had an impact on the stock.

KB Home reported earnings of $1.85 per share for the fourth quarter, surpassing the analyst consensus estimate of $1.69. However, this represents a 25.1% decrease compared to earnings of $2.47 per share in the same period last year.

Quarterly sales for KB Home were $1.67 billion, above analyst expectations of $1.62 billion. However, this still represents a 14.18% decrease compared to sales of $1.94 billion in the same period last year.

The company noted a 10% decrease in homes delivered in the three months ended November 30, with a total of 3,407 homes delivered. The average selling price for these homes was $487,300, compared to $510,400 in the same period last year.

Looking ahead, KB Home anticipates housing revenues for 2024 to be between $6.4 billion and $6.8 billion.

In a statement, Jeffrey Mezger, Chairman, President, and CEO of KB Home, said, “We ended the year with solid fourth quarter results, outperforming on key financial metrics relative to our guidance, including homes delivered that exceeded our expectations, reflecting improved build times. In addition, we generated considerable cash flow and continued to return capital to shareholders, repurchasing a significant amount of our common stock at well-below book value.”

Shares of KB Home were down 2.59% at $61.58 in the after-hours session at the time of publication.

The housing industry has been closely watched in recent years due to the high demand for homes and the impact of the COVID-19 pandemic on the market. Despite the challenges, KB Home’s performance in the fourth quarter shows resilience and potential for growth in the future.

It will be interesting to see how KB Home fares in the coming months as the housing market continues to evolve and adapt to changing economic conditions. Investors and analysts will be watching closely to see if the company can continue to deliver strong results and meet its revenue targets for 2024.

Overall, KB Home’s fourth-quarter earnings report provides a snapshot of the company’s performance and offers insight into the housing market as a whole. As the industry continues to navigate through uncertainties, KB Home remains a key player to watch.

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