KB Home Q1 Earnings Loom Amid Macro Worries: Retail Bulls Hold Ground, But Caution Creeps In

KB Home (KBH) stock has fallen marginally over the past week ahead of its fiscal first-quarter earnings on Monday.

According to FinChat data, Wall Street expects the homebuilder to report fiscal first-quarter revenue of $1.51 billion. KB Home has topped market expectations for quarterly revenue in all four previous quarters.

Last week, larger rival Lennar (LEN) posted a decline in profit and forecasted a decrease in the average selling price of houses in the second quarter.

Elevated interest rates and persistently high inflation have weighed on the demand for homes in the United States. According to a report by the Commerce Department, new home sales fell by 10.5% in January.

Several analysts have said that President Trump’s policies, including tariffs, can drive up house prices and further alienate home buyers.

According to The Fly, Wells Fargo cut the price target for KB Home to $63 from $65 earlier this month. The brokerage did not see valuation as a reason to “leg into shares, especially with much higher quality alternatives trading well off-peaks.”

The company had forecast first-quarter housing revenue between $1.45 billion and $1.55 billion.

It also projected fiscal 2025 revenue between $7 billion and $7.5 billion and average selling price in the range of $488,000 to $498,000.

Retail sentiment on Stocktwits moved to ‘bullish’ (55/100) territory from ‘neutral’(53/100) a week ago, while retail chatter stayed in the ‘low’ zone.

One user noted KB Home’s competitive edge, citing its energy-efficient builds and personalized design process.

Another, however, expressed skepticism, predicting a drop in KBH amid economic uncertainty and mixed housing market signals.

KB Home shares have fallen 16.30% over the past year.

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