Homebuilder KB Home (NYSE: KBH) will be reporting earnings tomorrow afternoon. Here’s what to look for.
KB Home met analysts’ revenue expectations last quarter, reporting revenues of $2 billion, up 19.5% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ backlog estimates.
Is KB Home a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting KB Home’s revenue to grow 2.2% year on year to $1.5 billion, slowing from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KB Home has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.8% on average.
Looking at KB Home’s peers in the industrials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lennar delivered year-on-year revenue growth of 4.4%, beating analysts’ expectations by 2%, and Lennar traded down 4% following the results, while Titan Machinery was up 15.8%.
Read our full analysis of Lennar’s results here and Titan Machinery’s results here.
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