KBH
📉 KB Home’s Q1 2025 earnings per share and revenue fell short of analyst expectations, marking the second miss in the last four quarters.
🏘️ Net orders and deliveries decreased significantly, reflecting a slowdown in the housing market and increased buyer hesitancy.
💰 The company’s CEO cited economic uncertainty and affordability concerns as key factors impacting the slower-than-usual spring housing market.
@bernardodegarcia:
“We are now going with the quarterly results of KB Home. KBH or KB Home. There we have it. They were falling almost 10%. They half recovered when the earnings call started. As you can see, at 58. Ah, and this type of company is falling more and more. They still don’t seem attractive to me, but sooner or later they will be very interesting. Remember, we want to buy cheap and sell high. Everything is cycles. Anyway, the shares of the homebuilder HKB Home plummeted in pre-market and after-hours trading after the announcement of its quarterly results for its first quarter of 2025. Earnings per share stood at 1.49, a figure lower than the consensus estimate of 1.58. This is the second time that the company has not achieved expected results in the last four quarters. In addition, sales decreased by 5.4% year-on-year, reaching 1.39 billion dollars in revenue. That was also below analysts’ expectations of 1.5 billion dollars. KBH’s net orders of KBH home or KBH fell 17% to 2,772 homes, while deliveries decreased 9% to 2,770 homes. Consequently, the company’s remaining order backlog of 4,436 homes amounts to a value of 2.2 billion dollars. According to its CEO, Jeffrey Mezger, home buyers are hesitant to make purchases due to this economic uncertainty that we have on top of us and concerns about affordability. I said it right? Therefore, the spring real estate market this year has been slower than usual, he said. However, after making some adjustments in their communities to offer better value, there has been a significant improvement in sales during the last month, which makes, well, maybe we have those green shoots, although still in my opinion it is not the time to buy this type of companies that, as you can see, have had their moment, this type of companies that went from a minimum of nine to a maximum of 90 and also, even if we bought it at 35 at the time, it would not have been a bad option having gone up to almost 90, well more than double. And right now, well, it is having a correction, it seems quite interesting in general, especially because it is a sector that I think is going to have a hard time in the short term, just like restaurants, retail stores, etcetera, etcetera are doing right now. I think discretionary consumer sooner or later is going to have a fairly bullish movement, since right now it is where the market is focusing a little more. Uh, it seems that the consumer is running out of battery. That’s where I like to look.”
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