Zacks Research Has Weak Estimate for KB Home FY2025 Earnings

Key Points

• Zacks Research has revised its FY2025 earnings estimate for KB Home to $6.36 per share, down from a previous estimate of $6.65, while maintaining a "Hold" rating on the stock.
• KB Home's consensus estimate for full-year earnings is significantly higher at $8.42 per share, indicating a potential discrepancy between analyst projections and company performance.
• The company recently announced a quarterly dividend of $0.25, resulting in an annualized dividend yield of 1.7%, with a payout ratio of 13.25%.

KB Home (NYSE:KBH - Free Report) - Equities researchers at Zacks Research dropped their FY2025 earnings estimates for KB Home in a research report issued to clients and investors on Wednesday, October 8th. Zacks Research analyst Team now forecasts that the construction company will post earnings of $6.36 per share for the year, down from their previous estimate of $6.65. Zacks Research has a "Hold" rating on the stock. The consensus estimate for KB Home's current full-year earnings is $8.42 per share. Zacks Research also issued estimates for KB Home's Q4 2025 earnings at $1.76 EPS, FY2026 earnings at $6.39 EPS and FY2027 earnings at $7.37 EPS.

Several other research firms have also recently issued reports on KBH. Wall Street Zen raised KB Home from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. Evercore ISI set a $65.00 target price on KB Home and gave the stock an "in-line" rating in a research report on Tuesday, October 7th. Keefe, Bruyette & Woods cut their target price on KB Home from $65.00 to $58.00 and set a "market perform" rating on the stock in a research report on Thursday, June 26th. Barclays set a $49.00 price objective on KB Home and gave the stock an "equal weight" rating in a report on Tuesday, June 24th. Finally, Royal Bank Of Canada boosted their price objective on KB Home from $58.00 to $59.00 and gave the stock a "sector perform" rating in a report on Thursday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $64.36.

KB Home Price Performance

NYSE KBH opened at $57.65 on Monday. The company has a market capitalization of $3.73 billion, a P/E ratio of 7.64, a PEG ratio of 4.75 and a beta of 1.40. KB Home has a 12 month low of $48.90 and a 12 month high of $85.92. The company's 50 day simple moving average is $63.03 and its 200 day simple moving average is $57.05.

KB Home (NYSE:KBH - Get Free Report) last released its earnings results on Wednesday, September 24th. The construction company reported $1.61 EPS for the quarter, topping analysts' consensus estimates of $1.50 by $0.11. KB Home had a net margin of 7.92% and a return on equity of 12.91%. The business had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.59 billion. During the same period in the previous year, the firm earned $2.04 EPS. The business's revenue for the quarter was down 7.4% on a year-over-year basis.

KB Home Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Thursday, November 13th will be issued a $0.25 dividend. The ex-dividend date is Thursday, November 13th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.7%. KB Home's dividend payout ratio is currently 13.25%.

Insider Buying and Selling at KB Home

In other news, COO Robert V. Mcgibney sold 14,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $53.52, for a total value of $749,280.00. Following the transaction, the chief operating officer owned 78,345 shares in the company, valued at $4,193,024.40. This represents a 15.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 3.89% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in KBH. State Street Corp increased its stake in shares of KB Home by 3.1% in the second quarter. State Street Corp now owns 3,503,159 shares of the construction company's stock worth $185,562,000 after acquiring an additional 106,926 shares during the last quarter. Geode Capital Management LLC increased its position in KB Home by 7.4% in the 2nd quarter. Geode Capital Management LLC now owns 1,784,398 shares of the construction company's stock worth $94,530,000 after purchasing an additional 123,030 shares during the last quarter. Norges Bank acquired a new position in KB Home in the 2nd quarter worth about $55,329,000. AQR Capital Management LLC increased its position in KB Home by 116.1% in the 1st quarter. AQR Capital Management LLC now owns 942,479 shares of the construction company's stock worth $53,957,000 after purchasing an additional 506,415 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in KB Home by 0.4% in the second quarter. Bank of New York Mellon Corp now owns 766,974 shares of the construction company's stock worth $40,627,000 after buying an additional 3,308 shares during the last quarter. Institutional investors and hedge funds own 96.09% of the company's stock.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.

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