Homebuilder KB Home (NYSE:KBH) will be reporting earnings tomorrow after market close. Here’s what you need to know.

KB Home beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $1.75 billion, up 10.4% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Is KB Home a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting KB Home’s revenue to grow 18.5% year on year to $1.98 billion, a reversal from the 13.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.44 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KB Home has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5.7% on average.

Looking at KB Home’s peers in the industrials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lennar’s revenues decreased 9.3% year on year, missing analysts’ expectations by 1.7%, and MSC Industrial reported a revenue decline of 2.7%, topping estimates by 2.6%. Lennar traded down 5.2% following the results while MSC Industrial’s stock price was unchanged.

Read our full analysis of Lennar’s results here and MSC Industrial’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the industrials stocks have shown solid performance, the group has generally underpeformed, with share prices down 6.9% on average over the last month. KB Home is down 11.3% during the same time and is heading into earnings with an average analyst price target of $80.31 (compared to the current share price of $63.25).

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