Wedbush Has Pessimistic Outlook of KB Home Q1 Earnings

KB Home (NYSE:KBH) – Wedbush reduced their Q1 2025 earnings estimates for KB Home in a note issued to investors on Monday, January 13th. Wedbush analyst J. Mccanless now anticipates that the construction company will post earnings of $1.61 per share for the quarter, down from their prior forecast of $1.79. Wedbush has a “Neutral” rating and a $75.00 price target on the stock. The consensus estimate for KB Home’s current full-year earnings is $8.42 per share. Wedbush also issued estimates for KB Home’s Q3 2025 earnings at $2.30 EPS, Q1 2026 earnings at $1.77 EPS, Q2 2026 earnings at $2.51 EPS and Q3 2026 earnings at $2.73 EPS.

KB Home (NYSE:KBH) last announced its quarterly earnings data on Monday, January 13th. The construction company reported $2.52 earnings per share for the quarter, beating the consensus estimate of $2.44 by $0.08. KB Home had a net margin of 9.31% and a return on equity of 15.69%. The business had revenue of $2 billion for the quarter, compared to analyst estimates of $1.99 billion. During the same period in the prior year, the business posted $1.85 earnings per share. KB Home’s revenue was up 19.5% compared to the same quarter last year.

A number of other analysts have also recently issued reports on KBH. Bank of America cut their target price on shares of KB Home from $80.00 to $76.00 and set a “neutral” rating for the company in a research note on Tuesday. Barclays cut their target price on shares of KB Home from $85.00 to $60.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Evercore ISI lifted their price objective on shares of KB Home from $88.00 to $95.00 and gave the company an “outperform” rating in a research note on Tuesday. Royal Bank of Canada upgraded shares of KB Home from an “underperform” rating to a “sector perform” rating and decreased their price target for the company from $70.00 to $67.00 in a research note on Friday, January 10th. Finally, Wells Fargo & Company cut their price target on shares of KB Home from $74.00 to $65.00 and set an “underweight” rating on the stock in a report on Monday. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $75.88.

KB Home Stock Up 1.8 %

Shares of KBH stock opened at $68.36 on Wednesday. KB Home has a 12-month low of $58.05 and a 12-month high of $89.70. The firm has a fifty day moving average of $73.32 and a 200-day moving average of $77.92. The company has a market capitalization of $5.01 billion, a price-to-earnings ratio of 8.76, a P/E/G ratio of 0.57 and a beta of 1.86.

Hedge Funds Weigh In On KB Home

Large investors have recently modified their holdings of the stock. FMR LLC raised its position in KB Home by 47.9% in the 3rd quarter. FMR LLC now owns 5,411,255 shares of the construction company’s stock worth $463,690,000 after buying an additional 1,752,498 shares during the last quarter. Holocene Advisors LP purchased a new position in KB Home in the 3rd quarter worth about $89,899,000. Hennessy Advisors Inc. purchased a new position in KB Home in the 4th quarter worth about $44,118,000. Charles Schwab Investment Management Inc. raised its position in KB Home by 22.1% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 906,236 shares of the construction company’s stock worth $77,655,000 after buying an additional 164,010 shares during the last quarter. Finally, Empowered Funds LLC raised its position in KB Home by 201.8% in the 3rd quarter. Empowered Funds LLC now owns 216,645 shares of the construction company’s stock worth $18,564,000 after buying an additional 144,854 shares during the last quarter. Hedge funds and other institutional investors own 96.09% of the company’s stock.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.