KB Home stock target cut to $78 on strong Q1 results but cost concerns
KBH
+2.43%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
On Thursday, Evercore ISI adjusted its outlook on KB Home (NYSE:KBH), reducing the price target to $78 from $82, while retaining an Outperform rating on the stock. The adjustment came after the homebuilder reported its first-quarter results for fiscal year 2024, which ended in February.
KB Home’s earnings per share (EPS) for the quarter stood at $1.77, adjusted for a $1.3 million land charge, surpassing both Evercore ISI’s projection of $1.68 and the consensus estimate of $1.57. The company’s gross margins exceeded expectations at 21.6%, compared to the anticipated 21.0%. Additionally, the year-over-year increase in orders by 55% also outperformed the forecasted 50% growth.
However, the company’s selling, general and administrative expenses (SG&A) did not meet expectations, coming in at 10.8% versus the projected 10.0%. Despite this, KB Home provided an updated outlook for the full fiscal year 2024, with most metrics aligning with Evercore ISI’s predictions.
The company’s recent performance has been indicative of a robust Spring Selling Season, with expectations for operating margin stability in the near term and increased profitability in the long term. Furthermore, KB Home’s emphasis on both expansion and share repurchases underscores its solid financial standing and positive cash flow, as noted in the company’s recent financial disclosures.
