Wall Street analysts expect KB Home (KBH) to post quarterly earnings of $1.79 per share in its upcoming report, which indicates a year-over-year decline of 29%. Revenues are expected to be $1.65 billion, down 17.6% from the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific KB Home metrics that are commonly monitored and projected by Wall Street analysts.
Analysts expect 'Total Revenues- Homebuilding- Housing' to come in at $1.64 billion. The estimate indicates a year-over-year change of -17.6%.
The consensus estimate for 'Total Revenues- Financial services' stands at $5.84 million. The estimate indicates a year-over-year change of -14.7%.
The combined assessment of analysts suggests that 'Total Revenues- Homebuilding' will likely reach $1.64 billion. The estimate points to a change of -17.6% from the year-ago quarter.
Analysts forecast 'Backlog - Homes - Total' to reach 3,400 . The estimate compares to the year-ago value of 4,434 .
Analysts predict that the 'Homes delivered - Total' will reach 3,506 . The estimate compares to the year-ago value of 3,978 .
Analysts' assessment points toward 'Net orders - Total' reaching 2,573 . Compared to the present estimate, the company reported 2,688 in the same quarter last year.
According to the collective judgment of analysts, 'Average selling price' should come in at $467.42 million. Compared to the current estimate, the company reported $501.00 million in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Ending community count' of 260 . The estimate compares to the year-ago value of 258 .
The average prediction of analysts places 'Backlog - Value - Total' at $1.67 billion. The estimate compares to the year-ago value of $2.24 billion.
It is projected by analysts that the 'Average community count' will reach 262 . The estimate compares to the year-ago value of 256 .
Based on the collective assessment of analysts, 'Operating Income- Homebuilding' should arrive at $139.16 million. Compared to the present estimate, the company reported $229.10 million in the same quarter last year.
The consensus among analysts is that 'Financial services pretax income' will reach $9.97 million. Compared to the current estimate, the company reported $13.10 million in the same quarter of the previous year.
Over the past month, shares of KB Home have returned +9% versus the Zacks S&P 500 composite's -0.2% change. Currently, KBH carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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This article originally published on Zacks Investment Research (zacks.com).
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