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KB Home Delivers Softer Outlook After Mixed Q3 Results

Published 09/21/2022, 04:57 PM
Updated 09/21/2022, 05:03 PM
© Reuters.

By Yasin Ebrahim

Investing.com - KB Home (NYSE:KBH) delivered softer guidance Wednesday after reporting mixed fiscal third-quarter results as earnings topped estimates, but revenue fell short of estimates as the homebuilder flagged a shortfall in deliveries and ongoing supply chain constraints likely to hurt fourth-quarter results.

KB Home fell more than 2% in after-hours trading after ending the day about 2% lower.

For the third quarter, EPS was $2.86, up from $1.60 a year ago, beating estimates of $2.66. Revenue rose 26% to $1.84 billion, but that was short of estimates of $1.88 billion.

Looking ahead to Q4, housing revenues were guided in the range of $1.95 billion to $2.05 billion on an average selling price in the range of $503,000. Analysts were expecting Q4 revenue of $2.36 billion.  

"Although we experienced a shortfall in deliveries relative to our expectation due to extended build times and ongoing supply chain constraints, which will also impact our 2022 fourth quarter, our results demonstrate our larger scale, excellent portfolio of communities and a healthy balance sheet," the company said.

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