KBH Earnings: KB Home's Stock Falls on Weak Forward Guidance
Confident Investing Starts Here:
The disappointing outlook overshadowed what was otherwise a strong print from KB Home. The Los Angeles, California-based company announced Fiscal second-quarter earnings per share (EPS) of $1.50, which beat the consensus estimate of $1.47. Revenue for the quarter ended May 31 was $1.53 billion, beating the $1.51 billion expected on Wall Street.
However, both the top and bottom line numbers reported for Fiscal Q2 were lower than a year ago, when the company's EPS came in at $2.15 and its sales totaled $1.71 billion. KB Home also lowered its full-year Fiscal 2025 guidance, saying it now expects revenue of $6.30 billion to $6.50 billion, down from $6.60 billion to $7 billion previously.
Homebuilding operating income declined to $131.5 million from $188.2 million a year ago, while the company's homebuilding operating margin fell 9% from 11.1% a year earlier in the latest quarter. Also, housing gross profit fell to 19.3% from 21.1% a year ago, mainly due to price reductions and homebuyer concessions.
KB Home's net income. Source: Main Street Data
Stock Buybacks
In the company's earnings release, KB Home's CEO Jeffrey Mezger said, 'In this environment and given our strong existing land pipeline, we are scaling back our land acquisition and development investments while increasing share repurchases.'
KB Home bought back $200 million worth of common stock at an average price of $54 per share in the just completed quarter. Mezger said the company plans to continue repurchasing shares during the rest of this year.
The average selling price of a KB Home property was $488,700 during the recent quarter, down from $500,700 in the previous quarter amid ongoing softness in the real estate market. Net orders decline 13% year-over-year to 3,460, while net order value fell 21% to $1.61 billion. KBH stock has declined 18% this year.
Is KBH Stock a Buy?
The stock of KB Home has a consensus Hold rating among 14 Wall Street analysts. That rating is based on four Buy, eight Hold, and two Sell recommendations issued in the last three months. The average KBH price target of $66 implies 23.78% upside from current levels. These ratings are likely to change after the company's financial results.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
Grading Deandre Ayton's $16 million Lakers contract
The post Grading Deandre Ayton's $16 million Lakers contract appeared first on ClutchPoints. When the Los Angeles Lakers allowed Dorian Finney-Smith to walk in free agency after he opted out of his contract, they suddenly found themselves with the full non-taxpayer mid-level exception at their disposal. That gave them around $14 million to spend, and it couldn't have come at a better time as a surprise free agent hit the market. Once Deandre Ayton hit free agency following his buyout from the Portland Trail Blazers, the Lakers seemed like a natural fit, and sure enough he agreed to a contract with the team. Advertisement Deandre Ayton's contract with the Lakers in free agency is for part of the MLE, two years and around $16 million with a player option for 2026-27. The other portion of the MLE is what the Lakers used to agree to terms with Jake LaRavia in the wake of Finney-Smith's departure. For a team that came into the offseason with not much room available to them by way of free agency, the Lakers did very well for themselves. The move to acquire LaRavia has already been discussed, and here's how the Ayton acquisition should shape up. Lakers agree to terms with Deandre Ayton While free agent contracts cannot be officially signed until July 6, the Lakers have agreed in principle to sign Deandre Ayton. The free agent market in terms of centers was relatively thin to begin with, and the Lakers' most likely pathway to getting the starting center they needed always seemed to be via trade. Advertisement It is possible they still make a trade to bolster the frontcourt further, but the so far the Lakers have had a fairly successful free agency period. A couple of the team's early center targets in Brook Lopez and Clint Capela came off the board quickly in the early hours of the negotiation period. The Lakers were never going to be a serious option for Myles Turner. That left slim pickings on the free agent market, at least until Ayton became available. Behind Turner, Ayton was arguably the next best free agent center option. Yes, ahead of both Lopez and Capela. His availability was surprising in itself, and a huge score for the Lakers. He is the epitome of what they need in a potential starting center. The Lakers don't need Ayton to be a superstar. They don't need him to be an All-Star. They don't even need him to be a No. 1-pick caliber player. They simply need someone to run the floor, grab rebounds, be a deterrent at the basket and get a few buckets. Simply put, he's better than anyone they had at center last season following Anthony Davis' departure. Advertisement Given Ayton's skillset, one can imagine how he might have impacted the Lakers' opening round playoff series against the Minnesota Timberwolves, especially on the glass. Ayton has been a double-digit rebounder his entire career with an average of 10.5 boards per game. He is a gifted offensive threat as well. The Lakers got next to nothing offensively out of the center position in the playoffs with JJ Redick forced to go small with LeBron James at center and Finney-Smith and Rui Hachimura at forward. Ayton has averaged double-digits in scoring every season of his career and has a shooting average of 59%. He can finish at the basket and he's consistent from mid-range as well. He's the kind of offensive center than can thrive with multiple playmaking threats in James, Luka Doncic and Austin Reaves. He also has a ton of motivation following questions about his motor and effort. For what the Lakers originally had coming into free agency, this is a home-run signing. He will be given all the opportunity in the world to make an impact, and it's a solid contract too. The second year is a player option and preserves cap space for 2027. Final grade: A Related: Sources: Lakers' next targets after Deandre Ayton contract agreement Related: Deandre Ayton issues strong six-word message to Lakers
Yahoo
24 minutes ago
- Yahoo
Amid AI boom, veteran analyst reboots AMD, Supermicro stock price targets
Amid AI boom, veteran analyst reboots AMD, Supermicro stock price targets originally appeared on TheStreet. Nvidia () stock typically hogs all the AI spotlight, but if you look at the bigger picture, two other names deserve a deeper look. AMD () and Super Micro Computer () stock have been silently positioning themselves at the heart of AI's next big upgrade cycle. 💵💰💰💵 The former is pushing for new GPUs to hyperscalers, desperate for an alternative, while the latter is building the racks that make all that horsepower usable at scale. With that said, a bold and fresh analyst take this week shows why these tech giants are poised to chip away at Nvidia's massive lead. One thing is clear from recent weeks: Nvidia's AI crown isn't as untouchable as it looks on paper. AMD, in particular, has been showing that it isn't content playing second fiddle. CEO Lisa Su recently dropped a bombshell at the company's big 'Advancing AI' event, unveiling the new Instinct MI350 series. These powerful new GPUs are built to supercharge AI, delivering up to four times more compute performance and a 35× boost in inference. More importantly, the top AI juggernauts in Meta, Microsoft, and OpenAI are already kicking the tires on these chips. That shows the bellwethers in the hyperscaler space are itching for a serious Nvidia AMD fires up the accelerator race, Supermicro is locking down the racks to run them. Though it was primarily a key player in motherboards and chassis, Supermicro now considers itself a leading hyperscale AI systems powerhouse. Last month, Saudi-based DataVolt signed a jaw-dropping $20 billion multi-year deal to deploy Supermicro's liquid-cooled GPU racks across AI campuses in Saudi Arabia and the U.S. Such an enormous order indicates that Supermicro's modular, dense, and energy-efficient designs are critical in powering AI mega-centers. Nvidia still calls the shots in the AI space, but AMD's MI350X ramp and Supermicro's hyperscale push highlight room for major competition. More Tech Stock News: Analyst reboots IonQ stock price target for surprising reason Apple could make big change to Siri, delight fans Veteran analyst issues big Broadcom call, shakes up AI stock race And with the MI400 series and Helios AI Rack on deck for next year, it's clear AMD and Supermicro are gunning to rewrite the script on AI. Mizuho's latest bullish note shows how AMD and Supermicro offer strong upside for chipmakers looking to feed AI's insatiable compute appetite. Mizuho analyst Vijay Rakesh stuck with his Outperform call on AMD stock but raised his 12-month price target to $152 from $135. That implies a 10.2% bump from Thursday's close at $137.91 and a 12.6% increase from the previous price target. Rakesh called out a 'slightly better MI355X ramp' in the second half of this year. That's huge, considering the new Instinct series is arguably AMD's most promising play at challenging Nvidia's AI accelerator dominance. Hyperscalers want alternatives, and AMD's open-standard hardware is firmly on their Mizuho didn't sugarcoat everything. It left its near-term numbers mostly unchanged, keeping the June-quarterly sales forecast at $7.40 billion and EPS at 47 cents, both just shy of consensus. For the full year, Rakesh has trimmed its EPS slightly to $3.90. Nevertheless, the real story is what happens next, with AMD's robust margin mix and high-end AI chips offsetting any short-term softness. Over at Supermicro, Rakesh sees plenty to like, too. He nudged his price target to $47 from $40, a healthy 17.5% bump, while keeping a Neutral rating. The veteran analyst believes the demand for AI servers is running hot. Sizeable shipments for Tier-2 Microsoft Azure partners, plus a steady drumbeat of orders for Supermicro's liquid-cooled GPU, point to an excellent runway ahead. Also, Rakesh models the Saudi Arabia DataVolt deal, adding $2.5 billion in annual sales starting next year, highlighting a massive ramp-up in top-line AI boom, veteran analyst reboots AMD, Supermicro stock price targets first appeared on TheStreet on Jul 6, 2025 This story was originally reported by TheStreet on Jul 6, 2025, where it first appeared. Sign in to access your portfolio
Bloomberg
an hour ago
- Bloomberg
ICE Raids Derail Los Angeles Economy as Workers Go Into Hiding
Los Angeles was already struggling to revive its fragile economy after the most destructive wildfires in its history erupted six months ago. Now, immigration raids are driving workers crucial to the rebuilding into the shadows. Framers and landscapers are abandoning job sites. Renovations of retail shops have stopped midway. Real estate developers say they're struggling to find crews to keep projects on track in a sector that relies heavily on immigrant labor.
