KB Home Q1 results: ‘we’ll generate returns-focused growth in 2022’

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KB Home (NYSE: KBH) on Wednesday blamed aggravated supply constraints and labour shortage as it reported weaker-than-expected results for its fiscal Q1. Shares slid nearly 5.0% in extended trading.

Key takeaways from KB Home Q1 results

  • Net income came in at $134.3 million versus the year-ago figure of $97.1 million.
  • Per-share earnings printed at $1.47; an increase from $1.02 last year.
  • Revenue jumped 23% YoY to $1.40 billion, as per the earnings press release.
  • FactSet consensus was for $1.54 of EPS on $1.50 billion in revenue.
  • Average selling price was up 22% in the first quarter to $486,100.
  • Home deliveries remained unchanged from last year at 2,868.

Operating income from homebuilding was up 49%, while financial services remained flat. Other notable figures include a 15% increase in net order value.

KB Home full-year guidance

For fiscal 2022, KB Home forecasts up to $7.60 billion in revenue and operating income from homebuilding as a percentage of revenue between 16% and 16.6%.

Average selling price this year could go as high as half a million dollars, as per KB Home. In the earnings press release, CEO Jeffrey Mezger said:

With a backlog value of $5.7 billion and over 10,400 homes in production, we are solidly positioned to achieve our financial targets this year. We believe we will generate meaningful returns-focused growth in 2022.

Last week, KeyBanc slashed its price target on KB Home to $30 a share.

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Source: https://invezz.com/news/2022/03/23/kb-home-q1-results-well-generate-returns-focused-growth-in-2022/