KB Home Expected to Report Q3 Earnings
KB Home Expected to Report Q3 Earnings
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Key Points
1
KB Home’s second-quarter results missed analysts’ expectations slightly, with adjusted EPS of $0.43 versus a consensus estimate of $0.44, although revenue of $1.11 billion exceeded the $1.09 billion forecast.
2
The company entered the third quarter with a weakened backlog: backlog value fell 7% year over year to $2.14 billion, while the number of homes in backlog declined 5% to 4,526. Management guided to 2,600–2,800 deliveries and $1.2 billion–$1.35 billion in third-quarter housing revenue.
3
KB Home’s average selling price fell to $461,900 in the second quarter from $488,700 a year earlier, adding pressure to revenue alongside lower deliveries and orders.
4
Analyst views remain divided: Zacks Research cut its third-quarter EPS estimate to $0.86 and assigned a “Strong Sell” rating, while Wells Fargo rated the stock “underweight” with a $50 price target and UBS maintained a “buy” rating with a $66 target. The broader analyst consensus was “Hold,” with a $59.92 target price.
5
KB Home shares opened at $47.08, near their 52-week low of $44.03 and well below the 52-week high of $67.57; the stock’s 50-day and 200-day moving averages were $54.45 and $53.66, respectively.
KB Home will report fiscal third-quarter 2026 earnings on September 22, with analysts expecting $0.89 per share and $1.30 billion in revenue Yahoo Finance. The forecast follows a weak second quarter when the homebuilder's revenue sank 27% year over year to $1.11 billion, deliveries dropped 23% to 2,395 homes, and earnings fell to $0.43 per share.
The company's full-year housing revenue guidance of $4.9 billion to $5.1 billion signals continued pain from high mortgage rates and affordability concerns Alphastreet. KB Home's success will hinge on whether its built-to-order model and cost controls can offset weaker orders and lower selling prices.
Second Quarter Missed on Deliveries and Average Home Price
KB Home's Q2 results barely beat expectations. Revenue of $1.11 billion topped the $1.09 billion forecast, but adjusted earnings per share hit $0.43 versus the consensus estimate of $0.44 Yahoo Finance. The real damage showed up in unit sales: deliveries fell 23% to 2,395 homes.
Average selling prices dropped sharply. KB Home's average home price fell to $461,900 in Q2 from $488,700 a year earlier — a 5.5% decline Business Circle. With both fewer homes sold and lower prices per home, revenue growth turned negative despite the company's size.
Backlog Weakness Raises Questions About Q3 Momentum
KB Home entered Q3 with a troubled order book. Backlog value dropped 7% year over year to $2.14 billion, while the number of homes in backlog fell 5% to 4,526 Alphastreet. These numbers suggest customer demand remains soft despite any pricing adjustments.
Management guided to 2,600–2,800 Q3 deliveries and $1.2 billion–$1.35 billion in housing revenue. That midpoint of 2,700 deliveries would mean modest improvement from Q2's 2,395 homes, but still below historical norms Yahoo Finance.
Analyst Estimates Range From Strong Sell to Buy
Wall Street is deeply divided on KB Home's outlook. Zacks Research slashed its Q3 EPS estimate to $0.86 and assigned a "Strong Sell" rating Watchlist News. Wells Fargo rated the stock "underweight" with a $50 price target, signaling downside risk.
Not all analysts are bearish. UBS maintained a "buy" rating with a $66 target price Yahoo Finance. The broader consensus settled on "Hold" with a $59.92 target. KB Home shares traded near $47.08, close to their 52-week low of $44.03 and well below the high of $67.57 Yahoo Finance.
Mortgage Rates and Affordability Remain the Core Problem
High mortgage rates and home-price affordability are crushing demand across the homebuilding sector. Yahoo Finance reports KB Home faces rising mortgage rates that push monthly payments out of reach for many buyers. The company's ability to cut costs and manage its backlog will determine whether Q3 results disappoint again.
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