Investors in KB Home (NYSE:KBH) had a good week, as its shares rose 4.5% to close at US$68.25 following the release of its annual results. KB Home reported in line with analyst predictions, delivering revenues of US$6.9b and statutory earnings per share of US$8.45, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for KB Home

Taking into account the latest results, the consensus forecast from KB Home's ten analysts is for revenues of US$7.17b in 2025. This reflects a credible 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 7.6% to US$8.38 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$7.34b and earnings per share (EPS) of US$8.79 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of US$77.71, suggesting the downgrades are not expected to have a long-term impact on KB Home's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on KB Home, with the most bullish analyst valuing it at US$97.00 and the most bearish at US$60.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that KB Home's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2025 being well below the historical 9.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that KB Home is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for KB Home. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for KB Home going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with KB Home .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.