KB Home cuts FY housing revenue forecast to $6.3B-$6.5B from $6.60B-$7.00B.

KB Home cuts FY housing revenue forecast to $6.3B-$6.5B from $6.60B-$7.00B.

KB Home (KBH) has announced a significant reduction in its fiscal year (FY) housing revenue forecast, signaling a cautious approach amidst challenging market conditions. The company has revised its FY housing revenue projections to a range of $6.3 billion to $6.5 billion, down from the previously stated range of $6.6 billion to $7.0 billion [1].

The decision to cut the housing revenue forecast comes amid a broader slowdown in the housing market, driven by factors such as high interest rates and economic uncertainties. According to a recent report by Goldman Sachs, China's property market is expected to experience a prolonged downturn, with annual new home demand falling below 5 million units [3]. This trend is likely to impact global housing markets, including KB Home's operations.

Despite the downward revision, KB Home has demonstrated confidence in its long-term strategic vision. The company recently authorized a $1 billion share buyback and increased its dividend, moves that analysts believe indicate a commitment to bolstering investor confidence [1]. The average one-year price target for KB Home stands at $65.64, offering a potential upside of 26.83% from the current trading price of $51.75 [1]. However, the stock is currently rated as "Hold" by multiple brokerage firms, reflecting a cautious outlook on current market conditions [1].

KB Home is scheduled to reveal its second-quarter (Q2) financial outcomes on Monday, June 23rd, after the market close. The consensus earnings per share (EPS) estimate stands at $1.46, representing a year-over-year decline of 32.1%, while the consensus revenue estimate is $1.51 billion, down 11.7% year-over-year [2]. Despite the expected short-term challenges, KB Home's strategic moves suggest a focus on long-term growth and investor relations.

References:
[1] https://www.gurufocus.com/news/2938238/kb-home-kbh-to-announce-q2-earnings-amid-declining-forecasts
[2] https://seekingalpha.com/news/4460027-kb-home-q2-2025-earnings-preview
[3] https://propnewstime.com/getdetailsStories/MTkxMzU=/goldman-sachs-warns-of-deep-long-term-slump-in-china-s-housing-market