KB Home stock faces a 20 percent Q3 revenue drop
KB Home's Q3 revenue dropped 20% year over year to USD 1.30 billion, with diluted EPS falling to USD 1.05 from USD 1.61. The company maintained its full-year housing revenue guidance of USD 4.90 billion to USD 5.10 billion despite narrowing gross profit margins. Analysts hold a cautious stance, with a consensus rating of Hold, as the stock remains near its yearly low.
Housing Costs Keep Rising: Lennar Points to Data Center Labor Demand While KB Home Flags Fuel, Tariff and Inflation Pressures
Lennar and KB Home reported rising cost pressures in their latest earnings calls, attributing them to various factors. Lennar highlighted labor shortages driven by data center demand, immigration crackdowns, and tariffs, alongside competition from a resurgent resale market. KB Home cited increasing fuel, general inflation, and tariff pressures, although it noted fewer issues with labor availability.
Morgan Stanley Initiates KB Home(KBH.US) With Sell Rating, Announces Target Price $39
Morgan Stanley analyst Adam Kramer has initiated coverage on KB Home (KBH.US) with a 'sell' rating and set a target price of $39. According to TipRanks data, Kramer has a 29.5% success rate and an average return of -3.7% over the past year. This information is for educational purposes and not an investment recommendation.
Morgan Stanley initiates KB Home stock with underweight rating
Morgan Stanley initiated coverage on KB Home (NYSE: KBH) with an underweight rating and a price target of $39.00, citing its Built-to-Order model as a distinguishing factor. The firm applied a 12.5x price-to-earnings multiple to fiscal 2027 EPS of $3.10, indicating potential downside from its current trading price of $46.47, which is near its 52-week low. Other analysts, including UBS, RBC Capital, BofA Securities, and Citizens, have recently adjusted their ratings and price targets for KB Home due to mixed Q3 results, softer margins, and pressures in the housing market.
KB Home Spends $50 Million Buying Back Shares Below Book Value—Analyst Questions Rising Leverage
KB Home repurchased $50 million worth of shares below book value in Q3, a move Executive Chairman Jeff Mezger defended by citing past capital returns and anticipated lower land spend. However, analyst Alan Ratner raised concerns about increasing leverage and the company's aggressive buyback strategy outrunning free cash flow. This has led to a higher debt-to-capital ratio and reduced cash, potentially limiting financial flexibility if housing conditions worsen.
Morgan Stanley initiates KB Home stock with underweight rating By Investing.com
Morgan Stanley initiated coverage on KB Home (NYSE:KBH) with an underweight rating and a price target of $39.00, citing the company's "Built-to-Order" model as a distinguishing factor. The firm applied a 12.5x price-to-earnings multiple to fiscal 2027 EPS of $3.10, noting the stock currently trades at a higher P/E of 13.04. Other analysts, including UBS, RBC Capital, BofA Securities, and Citizens, have issued mixed ratings and price target adjustments following KB Home's recent fiscal third-quarter earnings report.
Morgan Stanley Initiates KB Home at Underweight With $39 Price Target
Morgan Stanley has initiated coverage on KB Home (KBH) with an "Underweight" rating and set a price target of $39. This decision comes as the homebuilder faces a challenging market, highlighted by recent drops in weekly mortgage applications and an increase in the 30-year mortgage rate to its highest since November 2023. Other analysts have also recently adjusted price targets for KB Home downwards, citing concerns over the company's Q4 guidance.
Morgan Stanley Starts KB Home (KBH) at Underweight
Morgan Stanley analyst Adam Kramer initiated coverage on KB Home (NYSE: KBH) with an Underweight rating. The article provides the initial rating and the analyst responsible but requires a premium subscription for full details.
KB Home: The housing market has weakened since June—and Texas resale sellers 'capitulate a little bit more'
KB Home's Executive Chairman, Jeffrey Mezger, stated that the housing market has weakened since June, with resale inventory reaching a decade high. This increase in inventory is leading to declining prices in more markets, creating tension in the housing environment. The report highlights that Texas resale sellers are particularly affected, showing increased capitulation.
KB Home (KBH) Cuts Revenue Outlook, Is The Stock A Bargain?
KB Home (KBH) recently reported weaker third-quarter and nine-month sales, revenue, and net income, leading to a reduced revenue outlook. The stock has seen a significant decline over the past year, despite positive 3 and 5-year returns. While one narrative suggests the stock is 19% undervalued, a Discounted Cash Flow (DCF) model indicates it might be overvalued, presenting mixed messages on its current valuation.
Lennar says the homebuilding labor market is tightening again—KB Home isn't seeing it
Lennar CEO Stuart Miller indicates a tightening homebuilding labor market due to data center construction and reduced immigration, impacting construction costs after a period of softening. In contrast, KB Home CEO Robert McGibney has not yet observed the same labor market tightening, though material costs are increasing. The article highlights three key factors influencing the residential labor market: competition from data center construction, ongoing baby boomer retirements, and fluctuating international migration.
Rosenberg rejects 670-home KB Home deal as council says it has had enough of small lots
The Rosenberg City Council rejected a proposed utility agreement for a 670-home KB Home development, primarily due to concerns about small lot sizes and potential traffic congestion. Although the developer can still proceed without city services, the decision prevents Rosenberg from gaining financial benefits through utility rates and impact fees. Some council members prioritized community sentiment against dense housing developments over the financial incentives the deal offered.
Rosenberg rejects 670-home KB Home deal as council says it has had enough of small lots
The Rosenberg City Council rejected a proposed utility agreement for a 670-home KB Home development, primarily due to concerns about small lot sizes that do not meet city standards. While the vote doesn't entirely prevent KB Home from building, it means the developer must find alternative utility services or revise their proposal. The council's decision, despite potential financial benefits for the city, reflects residents' frustration with increasingly dense subdivisions and traffic congestion.
3 Stocks Under $50 We Keep Off Our Radar
This article identifies three stocks under $50—KB Home (KBH), Radian Group (RDN), and First Interstate BancSystem (FIBK)—that StockStory advises investors to avoid due to shaky business models and eroding fundamentals. For each company, it outlines specific reasons for potential underperformance, such as declining backlogs, sluggish growth, or decreasing profitability. The article also suggests that investors look into StockStory's recommended "Top 5 Growth Stocks" as alternatives.
KB Home’s (NYSE:KBH) Q3 CY2026 Earnings Results: Revenue In Line With Expectations But Full-Year Sales Guidance Misses Expectations
KB Home reported Q3 CY2026 earnings, with revenue meeting Wall Street expectations at $1.30 billion, despite a 20% year-on-year decline. However, the company's full-year revenue guidance of $5 billion fell 2% short of analysts' estimates. While GAAP EPS of $1.05 beat consensus by 16.7%, the company has struggled with long-term revenue and EPS growth, reflecting a cyclical downturn in the homebuilding industry.
3 Homebuilder Stocks To Watch After Berkshire Boosted Lennar Shares
Berkshire Hathaway's increased investment in Lennar has brought attention to the U.S. homebuilding sector amid rising mortgage rates. This article highlights three homebuilder stocks—KB Home, Lennar, and NVR—examining their operations and how their specific strategies might be impacted by market dynamics, offering insights for investors looking into this theme.
KB Home Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
The article "KB Home Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions" indicates that KB Home has outperformed analyst expectations. Following this positive performance, analysts have been revising their financial predictions for the company. This suggests a potentially optimistic outlook for KB Home's future financial trajectory.
KB HOME OPENS ARROYO, A NEW COMMUNITY WITHIN THE DESIRABLE GRIFFIN PARK MASTER PLAN IN MANTECA, CALIFORNIA
KB Home has announced the opening of Arroyo, a new community within the Griffin Park master plan in Manteca, California. The community offers one- and two-story single-family homes priced from the mid $500,000s, with planned on-site amenities and proximity to schools and parks. Homebuyers can personalize their homes at the KB Home Design Studio, and all homes are designed to be highly energy and water-efficient, meeting ENERGY STAR® certification standards.
KB HOME OPENS CITY VISTA: NEW PAIRED HOMES FROM THE MID $600Ks IN ESCONDIDO, CALIFORNIA
KB Home has announced the opening of City Vista, a new community offering paired homes in Escondido, California, starting from the mid $600,000s. These three-story homes feature up to four bedrooms and 3.5 baths, with planned amenities including a playground, benches, and walking paths. The community emphasizes energy efficiency, wildfire resilience, and personalization options for homebuyers.
Manteca homes with up to 6 bedrooms are now open for tours
KB Home has announced the opening of Arroyo, a new community within the Griffin Park master plan in Manteca, California. These new homes are priced from the mid-$500,000s and offer up to six bedrooms and 4.5 baths. The community features planned on-site amenities and provides convenient access to major highways, schools, and local attractions.
Earnings Beat: KB Home Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
KB Home (NYSE:KBH) recently reported third-quarter results that surpassed analyst expectations for EPS, despite revenues being in line. Following these results, analysts have revised their 2027 forecasts, projecting lower revenues and a significant cut to earnings per share estimates, indicating a more bearish sentiment. Despite the revised forecasts, the consensus price target for KB Home remained steady at US$55.58.
News | Buyer caution cited by KB Home, Lennar could help apartment owners
Major homebuilders KB Home and Lennar are reporting increased buyer caution due to economic uncertainty, high mortgage rates, and rising resale inventory. This trend is leading to weakened new-home sales and reduced builder profits, but could benefit apartment owners as potential buyers remain in rentals longer. Despite challenges, an analyst suggests stabilization and a more favorable market could emerge in 2027 if current pressures subside.
KB HOME OPENS BRIGHTON: NEW HOMES FROM THE LOW $200Ks IN HOCKLEY, TEXAS
KB Home has announced the opening of Brighton, a new-home community in Hockley, Texas, with homes starting from the low $200,000s. The community offers a variety of amenities, including a pickleball court, playground, and pool, and provides easy access to major highways for commuting to Houston and other employment centers. These new homes are designed to be energy and water efficient and are ENERGY STAR® certified.
KB Home (KBH) Stock Reprices As Margin Pressure Deepens
KB Home's stock fell by almost 3% after its Q3 earnings report revealed a significant squeeze on profitability, with net margins dropping to 4.3%. While the company reported solid revenue and EPS, challenges like a shrinking presold pipeline, reduced housing gross margin guidance, and decreased deliveries highlight deepening margin pressure. Bears point to tougher affordability and execution risks, which are not fully offset by operational improvements like faster build times.
KB Home’ build-to-order pivot pays off, but buyers remain cautious
KB Home's strategic shift back to a build-to-order model is improving its margins, despite a significant drop in Q3 2026 revenue and deliveries. The company's build-to-order mix reached 74%, leading to higher gross margins, but cautious buyers due to affordability constraints and economic uncertainty are impacting sales and led to lowered Q4 guidance. This approach prioritizes stronger margins over market share, recognizing that consumers are currently hesitant to commit to new home purchases.
[KB Home Q3 2026 Earnings Call] KB Home Slashes Q4 Price Outlook by $20,000 as Southern California Stumbles, Margin Squeeze Deepens
KB Home reported Q3 2026 earnings that met or exceeded guidance, driven by a successful shift back to a built-to-order model. However, management reduced Q4 average selling price guidance by $20,000 and lowered gross margin expectations due to underperformance in Southern California and rising direct costs. Despite these challenges, the company maintained full-year delivery guidance and expressed confidence in a stronger fiscal 2027 setup.
KB Home's shares pop on earnings beat
KB Home's shares surged after the company reported better-than-expected quarterly earnings. Alan Ratner from Zelman discussed the performance of homebuilder stocks following KB Home's positive earnings report. The article includes a short video segment from "Closing Bell Overtime" featuring this discussion.
KB Home (KBH) Could Be 17% Undervalued Following Its Earnings And Guidance
KB Home (KBH) recently reported its Q3 fiscal 2026 results, with sales of US$1,292.35 million and net income of US$65.28 million, but its shares have been under pressure despite an earnings beat. Analysts suggest the stock could be 17% undervalued with a fair value of $58.25 compared to its current price of $48.59, citing improved build times and modest long-term growth prospects. However, a discounted cash flow model presents a contrasting view, suggesting the stock might be overvalued at $48.59 against an estimated future cash flow value of $7.98, highlighting a split sentiment among investors.
Tech, Credit, Correspondent Products; STRATMOR on Succession Planning; KB Homes' Warning; UAD 3.6 Advice
This article covers various topics relevant to the mortgage industry, including discussions on technology, credit scoring, and correspondent lending products. It also highlights STRATMOR's insights on succession planning, a warning from KB Homes regarding challenging housing market conditions, and advice on navigating the upcoming UAD 3.6 appraisal changes. Additionally, the piece touches on capital markets, current mortgage rates, and recent economic data affecting the industry.
KB Home beat Wall Street — then warned of a tougher end to 2026.
KB Home exceeded Wall Street's profit expectations for its fiscal third quarter, reporting $1.05 per diluted share against an expected $0.89. Despite this beat, the homebuilder lowered its average selling price outlook for the fourth quarter to around $480,000, down from its June forecast, primarily due to fewer high-priced Southern California home closings. The company's built-to-order strategy helped cushion the impact of a softening market, but rising mortgage rates, increased resale competition, and a slowdown in Southern California led to a more cautious forecast for the end of 2026.
KB Home Leans on Built-to-Order Model as Market Weakens
Amidst a challenging housing market characterized by affordability issues and uncertain demand, KB Home is relying on its built-to-order (BTO) model to manage costs and risk. This strategy helped the company achieve its BTO mix target, with nearly three-quarters of third-quarter deliveries being BTO homes, leading to sequential margin improvement and a backlog increase. Despite these operational gains, KB Home experienced year-over-year declines in revenue, deliveries, and orders due to broader economic headwinds and a weakening resale market.
KB Home Cuts Margin Outlook as Housing Conditions Worsen
KB Home has revised its annual gross profit margin and housing revenue outlook downward due to worsening housing market conditions, primarily influenced by high mortgage rates. The homebuilder now anticipates a gross profit margin of 16.0% to 16.2% and housing revenue between $4.9 billion and $5.1 billion. This adjustment reflects a weaker market since their last earnings report in June.
What to watch: KB Home earnings amid homebuilder pressures
KB Home is set to release its fiscal third-quarter earnings, with analysts anticipating a significant sequential improvement in EPS and revenue despite challenging market conditions for homebuilders. The company is navigating rising mortgage rates, weakened buyer traffic, higher material costs, and labor shortages. Investors will focus on KB Home's ability to maintain margins and whether its current valuation discount is warranted given these headwinds.
Earnings Preview: KB Home to Report Financial Results Post-market on September 22
This article announces that KB Home (NYSE: KBH) is scheduled to release its financial results after the market closes on September 22. Investors and analysts will be closely watching this report for insights into the company's performance and the broader housing market.
Henderson family gets answers after water leaks into electrical lines, raising fire concerns
A Henderson family, led by Joseph Gennuso, is experiencing significant safety concerns due to water leaking into their home's electrical lines and cracks in their master bedroom balcony, problems they attribute to original construction defects. Despite purchasing the home in 2020 after the warranty expired, KB Home, the builder, has now committed to addressing the issues after media intervention. The family's primary concern is their safety, hoping for a permanent fix rather than monetary compensation.
Navy veteran receives mortgage-free home in the Valley from nonprofit Building Homes for Heroes
Navy veteran Cassandra Johnson was gifted a mortgage-free home in Goodyear, Arizona, by the nonprofit Building Homes for Heroes, in partnership with KB Home. Johnson expressed profound gratitude, stating the gift has provided security and changed her life after experiencing the physical and emotional toll of military service. Building Homes for Heroes has provided approximately 25 homes to veterans in the Phoenix area since 2012.
KB Home Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
KB Home is set to release its third-quarter earnings report on Tuesday, September 22, with analysts expecting a decline in both earnings per share and revenue compared to the previous year. Several analysts have revised their forecasts for KB Home, with some adjusting price targets both up and down, indicating mixed sentiment ahead of the earnings call. The company's shares gained 0.8% on Monday, closing at $49.57.
Las Vegas employee alleges years of harassment by manager at KB Home in federal lawsuit
A Las Vegas sales employee, Stephanie Cherney, has filed a federal lawsuit against KB Home, alleging years of sexual harassment, discrimination, unequal pay, and retaliation by a former manager, Justin McLeod. Cherney claims McLeod coerced her into unwanted sexual activity and retaliated against her professionally when she resisted. KB Home denies the allegations, stating an independent investigation found them unsubstantiated, and plans to vigorously defend against the lawsuit.
KB Home plans Everly Estates after $4.2 million Apopka land deal
KB Home has purchased 23 acres in Apopka for $4.2 million to develop Everly Estates, a 67-home community. The homes will range from 1,856 to 3,016 square feet with prices starting in the high $390,000s, and a grand opening is set for March 2027. The project also involves utility improvements, with the city requesting larger sewer and reclaimed-water lines to support future development.
KB Home (KBH) Reiterated at Market Outperform by Citizens on Rising BTO Demand
Citizens analyst James McCanless III has reiterated a Market Outperform rating for KB Home (NYSE: KBH) with a price target of $77.00. This comes amidst rising demand for Built-To-Order (BTO) homes. The full details of the analyst's report are available to premium subscribers of StreetInsider.com.
Builder opens NLV project planned for more than 1,500 houses
KB Home has launched its largest new community in Southern Nevada in a decade, the Sandstone development in North Las Vegas. This project is slated to include over 1,500 homes, featuring single-family houses and townhouses, with prices starting in the $300,000 range. The community will also offer parks, trails, and sports courts, marking a significant expansion for the builder in the region.
KB HOME TO RELEASE 2026 THIRD QUARTER EARNINGS ON SEPTEMBER 22, 2026
KB Home (NYSE: KBH) announced it will release its third-quarter 2026 earnings on Tuesday, September 22, 2026, after the market closes. The company will host a live webcast of its earnings conference call on the same day at 2:00 p.m. Pacific Time. Interested parties can access the webcast and replay on the Investor Relations section of KB Home's website.
KB HOME OPENS MORNINGSIDE: NEW HOMES FROM THE HIGH $200Ks IN DADE CITY, FLORIDA
KB Home has announced the opening of Morningside, a new-home community in Dade City, Florida, offering single-family homes from the high $200,000s. The community provides convenient access to local amenities, schools, and outdoor recreation, with homes designed for modern living and energy efficiency. Buyers have the option to personalize their homes at the KB Home Design Studio.
KB Home (NYSE:KBH) Stock: Is the Recent Pullback an Opportunity?
KB Home's recent stock pullback raises questions about whether it presents a valuation opportunity or reflects ongoing challenges in the housing market. Despite a lower earnings multiple compared to industry averages, the company's prospects are heavily influenced by housing affordability, mortgage rates, and construction costs. The article explores both the bullish case, supported by a structural housing shortage and favorable regional demand, and the bearish case, highlighting risks from elevated mortgage costs and margin pressures.
KB Home Names Casey Dare as Tampa Division President
KB Home has appointed Casey Dare as its new Tampa division president. Dare will be responsible for all company operations in the region, including land acquisition, construction, sales, and customer service. KB Home, ranked No. 7 on the 2026 Builder 100 list, plans to open four new single-family home communities in the Tampa area in 2026.
KB HOME NAMES CASEY DARE AS PRESIDENT OF ITS TAMPA DIVISION
KB Home has appointed Casey Dare as the new President of its Tampa Division. Dare, who has over 20 years of homebuilding experience and 10 years with KB Home, will oversee all homebuilding operations in the region. The company continues to expand in the Tampa market, with plans to open four new communities this year.
KB Home names Casey Dare as Tampa division president
KB Home has appointed Casey Dare as the new president of its Tampa division, where he will oversee all homebuilding operations, including land acquisition, construction, sales, and customer service. Dare brings over 20 years of homebuilding experience, 10 of which have been with KB Home, holding various leadership roles. The company, which has been active in Tampa since 2002, plans to open four new single-family home communities in the region this year.
KB Homes pauses construction following death of subcontractor
A house under construction at a KB Home development in south Austin collapsed due to severe winds, killing one subcontractor and injuring another. The incident, which occurred during a rainstorm, prompted KB Home to suspend construction at the site and cooperate with investigations by Travis County ESD 5 and OSHA. The deceased was part of a framing crew, and his family and colleagues are receiving thoughts and prayers from the company.
KB Home looking to develop far-flung Williamson County tracts
KB Home, a national homebuilder, is planning a significant self-development project in the Georgetown area of Williamson County, Texas. The proposal includes numerous amenities and homes designed with water conservation certification. This development is detailed in the Austin Business Journal, which also lists the largest homebuilders in the region.
Will KB Home's (KBH) Energy-Efficient Brighton Crossings Community Shift Its Value-Focused Narrative?
KB Home has launched Brighton Crossings, an energy-efficient new-home community in Colorado, which aligns with the company's strategy of focusing on highly efficient homes and master-planned settings. While this expansion highlights KB Home's commitment to improved build times and land deployment, investors should be aware of potential risks from regional slowdowns and pricing pressure. The article suggests that despite analyst optimism, regional volatility and energy-efficient expansion could significantly alter future expectations for KB Home's revenue and earnings.
