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Market Overview

Earnings Outlook For KB Home

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On Tuesday, January 12, KB Home (NYSE:KBH) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on KB Home management projections, analysts predict EPS of $0.93 on revenue of $1.14 billion. KB Home EPS in the same period a year ago totaled $1.31. Sales were $1.56 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 29.01%. Revenue would be down 26.88% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.54 0.50 0.44 1.29
EPS Actual 0.83 0.55 0.63 1.31
Revenue Estimate 893.24 M 1.07 B 955.79 M 1.61 B
Revenue Actual 999.01 M 913.97 M 1.08 B 1.56 B

Stock Performance

Shares of KB Home were trading at $33.05 as of January 08. Over the last 52-week period, shares are down 9.1%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. KB Home is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings