KBH Stock: 9 Reasons Why KB Home Shares Are Climbing Today

KB Home (NYSE:KBH) stock is rising higher on Thursday following the release of the company’s most recent earnings report.

KB Home residential development project on Communications Hill in San Jose, South San Francisco Bay Area; KB Home builds homes primarily for first-time home buyers (KBH stock)

Source: Sundry Photography / Shutterstock.com

Let’s break down that earnings report below to see why investors in KBH stock are celebrating today!

  • The first highlight from the Q4 earnings report is the company’s diluted earnings per share of $1.91.
  • That easily beats out Wall Street’s estimate of $1.77 per share for the quarter.
  • It’s also a 71% increase in diluted EPS year-over-year.
  • All of that is despite the company’s revenue of $1.68 billion.
  • That wasn’t able to reach analysts’ estimates of $1.71 billion for the period.
  • Even so, it still represents a 40% increase over the $1.19 billion reported during the same time last year.
  • KB Home also includes guidance for fiscal 2022 in its latest earnings report.
  • This has it expecting revenue for the year to range from $7.2 billion to $7.6 billion.
  • That’s not looking bad compared to Wall Street’s 2022 revenue estimate of $7.27 billion for the homebuilding company.

Jeffrey Mezger, chairman, president and CEO of KB Home, said the following about the earnings report.

“We delivered outstanding growth in revenues and margins in our 2021 fourth quarter, leading to a more than 70% year-over-year increase in earnings per share. With the strong finish to 2021, we generated a full-year return on equity of approximately 20%.”

The Q4 earnings report has KBH stock seeing heavy trading today. This has more than 12 million shares of the company’s stocks changing hands as of this writing. That’s a significant jump over the company’s daily average trading volume of 1.3 million shares.

KBH stock is up 15.3% as of Thursday afternoon.

Investors looking for more stock market news will want to keep reading!

We’ve got all the latest stock happenings for Thursday that traders will want to know about! That includes what’s happening with shares of Lumen Technologies (NYSE:LUMN), Virgin Galactic (NYSE:SPCE), and BTCS (NASDAQ:BTCS) today. You can find out all about that, and more, by following the links below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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