KB Home posted second quarter earnings that surpassed analysts’ expectations.
The homebuilding company’s earnings for the quarter came in at $2.32 a share, handily topping the $2.04 expected by analysts polled by FactSet. Earnings per share were +55% higher than the year-ago quarter.
Revenue rose +19% from the year-ago quarter to $1.72 billion, also exceeded consensus expectations of $1.65 billion (based on FactSet poll).
While the number of homes delivered of 3,469 units was flat compared to the year-ago quarter, the average selling price rose +21% to $494,300.
Net orders fell -9% from the prior-year quarter to 3,914 homes. However, the value of net orders climbed +4% to $2.12 billion.
The company’s housing gross margin widened by +390 basis points (bps) year over year to 25.3%, on the back of strength in pricing due to strong housing demand couple with limited supply of available homes for sale and the lower amortization of previously-capitalized interest. This was partially offset by increased construction costs and higher expenses made towards current operations and expected growth.
Looking ahead, the company now projects housing revenues in the range of $7.30-$7.50 billion for fiscal 2022, narrower than the previous forecast range of $7.20-$7.60 billion. It expects average selling price of homes to be $500,000. Homebuilding operating margin (assuming no inventory-related charges) is predicted to improve 16-16.6%.
KBH's Aroon Indicator triggered a bullish signal on July 09, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 229 similar instances where the Aroon Indicator showed a similar pattern. In of the 229 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on July 09, 2025. You may want to consider a long position or call options on KBH as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for KBH just turned positive on June 23, 2025. Looking at past instances where KBH's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
KBH moved above its 50-day moving average on July 08, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for KBH crossed bullishly above the 50-day moving average on July 03, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KBH advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where KBH's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KBH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
KBH broke above its upper Bollinger Band on July 01, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.366) is normal, around the industry mean (7.196). P/E Ratio (9.519) is within average values for comparable stocks, (103.177). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.437). Dividend Yield (0.011) settles around the average of (0.046) among similar stocks. P/S Ratio (0.876) is also within normal values, averaging (88.859).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. KBH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a constructor and seller single family homes as well as condominium complexes
Industry Homebuilding