KB Home Sees 65% EPS Decline, 21% Revenue Drop, 7.6 P/E
KB Home is expected to report Q1 EPS of $0.52 on revenue of $1.1 billion, marking a 65.1% year-over-year EPS decline and 21.1% revenue drop due to lower home deliveries and selling prices. The stock trades at a P/E of 7.6 and earnings yield of 13.16%, suggesting attractive valuation.
1. Q1 Projections
KB Home is forecast to report first-quarter EPS of $0.52 and revenue of $1.1 billion, representing year-over-year declines of 65.1% and 21.1% driven by lower home deliveries and average selling prices.
2. Historical Earnings Surprises
The company has exceeded consensus EPS estimates in three of the last four quarters, delivering an average surprise of 3.4% as it navigated pricing and volume challenges.
3. Valuation Metrics
Valuation metrics reflect a modest price relative to earnings and sales, with a P/E ratio near 7.6, price-to-sales of 0.52, enterprise-value-to-sales of 0.76 and an earnings yield of 13.16%.
4. Balance Sheet and Outlook
Liquidity remains strong with a current ratio around 4.57 and debt-to-equity of 0.44, while deteriorating gross margins and backlog reductions have prompted a 2025 EPS outlook of $3.90 to $4.60.