KB Home Q3 2024 Earnings Summary $KBH
KB Home reported Quarter 3 2024 results, highlighting solid growth in revenue and earnings, as well as optimistic projections for the remainder of the year and into fiscal 2025.
The company's Chief Executive Officer, Jeffrey Mezger, emphasized a continued rise in both revenue and diluted earnings per share. He stated, "We achieved double-digit year-over-year growth in revenues and diluted earnings per share in the third quarter." He projected full-year revenues of approximately $6.9 billion with a gross margin exceeding 21 percent. Mezger highlighted a favorable housing market due to low inventory levels, steady employment rates, and a growing demographic demand for homes. He noted that, despite some market volatility, there was an increase in customer traffic and digital leads toward the end of August, indicating a rebound in demand.
Chief Financial Officer, Jeff Kaminski, added that the third quarter's revenues reached over $1.75 billion, driven by higher home deliveries and a robust absorption rate. He remarked, "Our current quarter performance was favorably impacted by continued improvements in construction cycle time and lower cancellation rates." These developments allowed KB Home to achieve a significant year-over-year increase in net income and earnings per share. The balance sheet remained strong, with investments of $845 million in land acquisition, reflecting the company's intent to expand its growth footprint.
Mezger also mentioned the flexibility of their Build-to-Order model, which allows customers to personalize their homes, thus enhancing customer satisfaction. The joint venture, KBHS Home Loans, continued to yield impressive capture rates, helping manage backlog effectively.
In conclusion, KB Home's outlook remains promising, with expectations of continued growth as the company enters the year ahead. The management believes that their strategies will drive increased scale, profitability, and shareholder returns, aiming for revenue of around $7.5 billion in fiscal 2025. Mezger confidently stated, "We are well-positioned for future growth, as we meaningfully invest in the expansion of our business and diversify our geographic footprint." This sets a positive tone for both investors and stakeholders looking to the future.
