KB Home (KBH) saw a significant price increase on January 14, 2025, closing at $67.17, up 4.82% from the previous close of $64.08. The stock opened at $71.63, reaching a high of $72.44 before settling down. This surge was driven by the company's strong fourth-quarter earnings report, which exceeded Wall Street expectations. KB Home reported earnings per share of $2.52, surpassing the consensus estimate of $2.44, and revenue of $2 billion, slightly above the anticipated $1.98 billion. The positive results were attributed to a 17% increase in home deliveries and a 19% rise in revenue y/y, despite challenges from high mortgage interest rates.
The market reacted positively to KB Home's strategic investments in land acquisition and development, which are expected to support future growth. The company also provided a promising outlook for fiscal year 2025, projecting revenue between $7 billion and $7.5 billion. Analysts noted the company's strong demand for homeownership and improved market conditions, with new orders climbing by about 40% y/y. Despite some concerns over margin compression due to buyer hesitancy and elevated incentives, the overall sentiment remained optimistic.