Q3 2024 KB Home Earnings Call Transcript
Key Points
- KB Home (KBH) achieved double-digit year-over-year growth in revenues and diluted earnings per share in the third quarter.
- The company generated total revenues of over $1.75 billion and diluted earnings per share of $2.04.
- Cancellation rates remained low, and build times have compressed, leading to higher-than-anticipated home deliveries.
- The company invested $845 million in land acquisition and development, a 50% year-over-year increase, positioning for future growth.
- The Federal Reserve's recent interest rate cut is expected to benefit consumer confidence and affordability, potentially boosting demand.
- Gross margin was slightly lower at 20.6%, down from the past two quarters.
- Operating income margin was within the guided range but lower than the prior year at 10.8%.
- Buyers showed hesitancy due to elevated interest rates and economic concerns, leading to softened demand in late June through July.
- The company had to adjust pricing in some communities to maintain sales pace, impacting overall revenue.
- Higher land and development costs, along with competitive pressures, continue to challenge profitability.
Good afternoon. My name is John, and I'll be your conference operator today. I would like to welcome everyone to the KB Home 2024 third quarter earnings conference call. (Operator Instructions) Today's conference call is being recorded and will be available for replay at the company's website, kbhome.com, through October 24, 2024.
And now, I would like to turn the call over to Jill Peters, Senior Vice President, Investor Relations. Thank you, Jill. You may begin.
Thank you, John. Good afternoon, everyone, and thank you for joining us today to review our results for the third quarter of fiscal 2024. On the call are Jeff Mezger, Chairman and Chief Executive Officer; Rob McGibney, President and Chief Operating Officer; Jeff Kaminski , Executive Vice President and Chief Financial Officer, and Bill Hollinger, Senior Vice President and Chief Accounting Officer.
During this call, items will be discussed that are considered forward-looking statements within the meaning of the Private
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
