KB Home is a U.S. homebuilding company that builds and sells attached and detached single-family homes, townhomes, and condominiums, primarily for first-time, first move-up, second move-up, and active adult buyers. It also offers financial services including mortgage banking, property and casualty insurance, earthquake, flood, and personal property insurance, and title services. The company operates in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. Formerly known as Kaufman and Broad Home Corporation, it changed its name to KB Home in January 2001, was founded in 1957, and is based in Los Angeles, California.
KBH Surges on Housing Bill and Turnaround Plan Despite Weak Q2
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Housing Bill Passed Congress passed the 21st Century Road to Housing Act, which cuts red tape, streamlines permits, and bars large institutional investors from buying more single-family homes. This reduces competition and lowers costs, boosting KBH and peers. KBH jumped 17.8% on the news.
This is the biggest new catalyst driving KBH's stock this period.
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BTO Transition Trough Over KB Home said the temporary delivery dip from its shift to built-to-order homes is over. It expects sequential growth, margin expansion, and a $50-$100 million buyback. Built-to-order homes now make up 73% of orders and earn higher margins.
This is a new company-specific positive that signals a turnaround.
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Weak Q2 Earnings KB Home reported Q2 revenue of $1.11 billion and EPS of $0.43, missing EPS estimates. Net income fell to $27.3 million from $107.9 million a year ago, and deliveries dropped 23%. This shows the company is still struggling with soft demand.
This is a new negative that explains why KBH's stock might face pressure despite the rally.
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Lower Mortgage Rates Falling oil prices pushed bond yields down, with the 10-year Treasury yield dropping below 4.5%. Lower yields typically lead to lower mortgage rates, making homes more affordable and boosting demand for builders like KBH.
This is a new macro tailwind that supports the housing sector.
Q2 Sales and Profit Collapse KB Home's fiscal Q2 revenue fell 27% to $1.11 billion, EPS dropped 71% to 43 cents, deliveries fell 23%, and the operating margin shrank to 2.5% from 8.6%. This weak result, plus a lowered full-year outlook, pushed the stock down 8.2% and set a negative tone for the period.
It shows the core earnings deterioration that drove the stock lower and frames the period's weak backdrop.
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Housing Market Pressures Persist Mortgage rates hit a two-year high of 7.12%, hurting affordability. Rival Lennar reported orders down 9% and cut its delivery target, and Jim Cramer warned KB Home would face the same weak demand. This matters because fewer buyers and high rates directly reduce KB Home's sales and pricing power.
It explains the external demand and affordability headwinds that keep pressure on KBH's sales and margins.
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Built-to-Order Shift Lifts Margins KB Home beat Q3 EPS estimates ($1.05 vs. $0.90) and improved its housing gross margin to 16.5% from 15.2% in Q2, as built-to-order homes reached nearly three-quarters of deliveries. This strategic shift gives the company better control over costs and margins, a real positive for future profits.
It highlights the one clear operational improvement that supports KBH's profitability despite weak sales.
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Q4 Outlook Disappoints, Orders Fall KB Home projected Q4 deliveries below expectations and gross margins of 16%-16.6%, short of the 17.2% analysts wanted. Net orders fell 12% and cancellations rose to 18%. The stock fell over 1% as investors worried that weak demand and high rates will keep squeezing future sales and profits.
It shows forward guidance and order trends that signal continued weakness, weighing on the stock after the earnings beat.
Q2 Sales and Profit Collapse KB Home's fiscal Q2 revenue fell 27% to $1.11 billion, EPS dropped 71% to 43 cents, deliveries fell 23%, and the operating margin shrank to 2.5% from 8.6%. This weak result, plus a lowered full-year outlook, pushed the stock down 8.2% and set a negative tone for the period.
It shows the core earnings deterioration that drove the stock lower and frames the period's weak backdrop.
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Housing Market Pressures Persist Mortgage rates hit a two-year high of 7.12%, hurting affordability. Rival Lennar reported orders down 9% and cut its delivery target, and Jim Cramer warned KB Home would face the same weak demand. This matters because fewer buyers and high rates directly reduce KB Home's sales and pricing power.
It explains the external demand and affordability headwinds that keep pressure on KBH's sales and margins.
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Built-to-Order Shift Lifts Margins KB Home beat Q3 EPS estimates ($1.05 vs. $0.90) and improved its housing gross margin to 16.5% from 15.2% in Q2, as built-to-order homes reached nearly three-quarters of deliveries. This strategic shift gives the company better control over costs and margins, a real positive for future profits.
It highlights the one clear operational improvement that supports KBH's profitability despite weak sales.
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Q4 Outlook Disappoints, Orders Fall KB Home projected Q4 deliveries below expectations and gross margins of 16%-16.6%, short of the 17.2% analysts wanted. Net orders fell 12% and cancellations rose to 18%. The stock fell over 1% as investors worried that weak demand and high rates will keep squeezing future sales and profits.
It shows forward guidance and order trends that signal continued weakness, weighing on the stock after the earnings beat.
News & notes movingKBH
United States
KBH▼
Lennar and KB Home Flag Rising Labor, Fuel and Tariff Cost Pressures
Lennar Corporation and KB Home both flagged rising cost pressures during their latest earnings calls, pointing to data-center-driven labor shortages, tariffs and inflation as headwinds for the housing market. On Lennar's third-quarter call in September, chairman, president and CEO Stuart Miller said labor availability is definitely one of geography, citing data centers, sporadic immigration crackdowns and tariffs, while executive vice president for homebuilding David Collins said roughly 20% of the company's divisions are seeing greater pressure than the vast majority. Miller added that the shortage shows up unevenly by trade, with landscaping an example, and said the resale market is becoming more and more of a competition, though chief operating officer Jim Parker noted increased resale activity can also unlock more move-up buyers. KB Home President and CEO Rob McGibney said his company has built direct fuel surcharges into trade contracts so they can be extracted immediately if fuel prices pull back, and expects slightly higher sequential direct costs for fourth-quarter deliveries after experiencing increasing cost pressure from fuel, general inflation and tariffs. Lennar's third-quarter revenue of $8.05 billion missed analyst estimates with new orders down 9% year-over-year, while KB Home posted a third-quarter beat with $1.297 billion in revenue and $1.05 per share. Lennar's shares were down 0.72% to $81.00 in premarket trading on Thursday, while KB Home stock declined about 2.09% to $45.50.
KBH · Supply · Negative KB Home expects higher sequential direct costs from fuel, inflation and tariffs, building fuel surcharges into trade contracts.
LEN · Supply · Negative Lennar flagged data-center-driven labor shortages, immigration crackdowns and tariffs as cost headwinds, with new orders down 9% YoY.
Homebuilding Stocks Slide as Mortgage Rates Hit 7.5%
Homebuilding and home improvement stocks are heading for a bruising September as mortgage rates climb back to 7.5%. The S&P 500 Homebuilding Index has fallen 3.2% so far this month, pressured by the rapid run-up in mortgage rates and slumping revenues at Lennar and KB Home. Retailers are faring worse: Home Depot shares have slid 11% this month and Lowe's has dropped 8.5% as building activity slows and renovators shift to smaller, cheaper products. Mortgage rates have surged more than half a point in two weeks, and on Monday the average rate on a 30-year fixed-rate loan touched 7.5% for the first time since April of 2024. After briefly falling below 6% early this year, rates were pushed higher by the war in Iran and accompanying inflation, dampening sales and keeping homebuyers sidelined.
HD · Demand · Negative Home Depot shares slid 11% this month as slowing building activity and renovators shifting to smaller, cheaper products hit demand.
LOW · Demand · Negative Lowe's dropped 8.5% this month as slowing building activity and a shift to smaller, cheaper renovation products weigh on demand.
KBH · Demand · Negative KB Home is cited for slumping revenues amid the mortgage-rate surge that is keeping homebuyers sidelined.
LEN · Demand · Negative Lennar is cited for slumping revenues as mortgage rates climbing to 7.5% dampen home sales.
KB Home Q3 Housing Revenue Falls 20% as Backlog Rises to $2.05 Billion
KB Home reported fiscal third quarter housing revenue fell 20% to $1.3 billion and deliveries dropped 19% to 2,732 homes, while backlog value rose for the first time in four years to $2.05 billion. Built to Order homes made up 74% of third quarter deliveries, up from 60% in the second quarter, and unsold inventory fell to 26% of production from 41% a year ago, with construction cycle time improving 19% to 99 days from 122 days. Diluted earnings per share fell to $1.05 from $1.61 a year ago, housing gross margin compressed to 16.5% from 18.2%, and homebuilding operating income was cut nearly in half to $67.1 million from $131.2 million. Chief Financial Officer Bill Hollinger said market conditions have evolved differently than expected since June, and the company cut its fourth quarter gross margin outlook by a full percentage point to a range of 16.0% to 16.6%, while average selling price guidance dropped roughly $20,000 to about $480,000. KB Home returned more than $65 million to shareholders in the quarter through buybacks and dividends, part of a five-year total north of $2.1 billion, and book value per share climbed above $62.
KBH · Capital · Negative Q3 housing revenue fell 20%, EPS dropped to $1.05 from $1.61, gross margin compressed to 16.5%, and Q4 margin guidance was cut.
McDonald's Earmarks $8.5 Billion for Franchisee Overhaul
McDonald's is earmarking roughly $8.5 billion to help franchisees implement a multiyear plan to serve better food, improve service and make restaurants easier to run, news announced as the company held its investor day in Chicago. Cracker Barrel shares gained after the restaurant chain provided an adjusted Ebitda forecast for fiscal 2027 that beat the average analyst estimate, with the stock up 7% on the day and 79% over a longer stretch. KB Home shares dropped after the homebuilder lowered the upper end of its housing revenue forecast for the full year and cut its housing gross profit margin for 2026, citing worsening conditions in the housing industry. The moves came as mortgage rates reached their highest level in two years at 7.12%.
MCD · Capital · Positive McDonald's is earmarking roughly $8.5 billion to help franchisees implement a multiyear overhaul plan.
CBRL · Capital · Positive Cracker Barrel provided an adjusted Ebitda forecast for fiscal 2027 that beat the average analyst estimate, sending shares up 7%.
KBH · Capital · Negative KB Home lowered the upper end of its full-year housing revenue forecast and cut its 2026 housing gross profit margin.
Cracker Barrel Posts 395% Earnings Surprise as General Mills and KB Home Also Beat
Cracker Barrel Old Country Store posted a positive earnings surprise of 395% in its fiscal Q4 report, sending shares up 6.8% in early trading and adding to a 79% gain year to date. General Mills beat expectations on both top and bottom lines, with earnings of $0.75 per share topping the Zacks consensus by 3 cents on revenues of $4.39 billion, 1.04% above estimates, though its shares traded flat and remain down 23.8% in 2026. KB Home surpassed forecasts with earnings of $1.05 per share on $1.3 billion in revenues, ahead of expectations for $0.88 per share and $1.29 billion in sales, but shares fell 3% as the homebuilder warned of headwinds in the present quarter including higher mortgage rates. Pre-market indices slipped, with the Dow down 174 points, the Nasdaq down 94, the S&P 500 down 11 and the Russell 2000 down 17, while WTI crude sat at $90 per barrel and Brent at $100 per barrel and the 10-year yield held at 4.99%. Fed Governor Michael Barr is set to speak on housing affordability at the Federal Reserve Bank of Chicago, and flash S&P Manufacturing and Services PMI for September are due after the open, with Manufacturing expected at 53.5 and Services at 55.7.
IonQ Claims First Real-Time Quantum Error Decoder, Shares Jump 12%
IonQ said it tested the industry's first real-time quantum error decoder, sending its shares up 12% in premarket trading and lifting the broader quantum sector, with Rigetti Computing and D-Wave Quantum each up more than 5.5% and Infleqtion rising a similar amount. Worthington Enterprises surged about 16% after first-quarter adjusted earnings and revenue surpassed Street estimates, with CEO Joseph Hayek citing rapidly growing demand for the company's engineered American Society of Mechanical Engineers tanks used in liquid cooling systems for data centers. KB Home fell more than 1% after projecting fourth-quarter deliveries below expectations and housing gross margins of 16% to 16.6%, short of the 17.2% analysts polled by LSEG sought. Six Flags Entertainment rose 1% after a Wall Street Journal report that activist hedge fund Jana Partners was encouraging the company to explore a sale, following the fund's disappointment with Six Flags' second-quarter earnings report. Maplebear, the Instacart owner, gained more than 3% after announcing that customers on its grocery platform can use Meta's personal AI agent Muse, joining OpenAI's ChatGPT, Anthropic's Claude and Google's Gemini as AI partners.
IONQ · Technology · Positive IonQ said it tested the industry's first real-time quantum error decoder.
KBH · Capital · Negative KB Home projected Q4 deliveries below expectations and housing gross margins short of analyst estimates.
CART · Technology · Positive Instacart customers can now use Meta's AI agent Muse on its grocery platform, adding an AI partner.
FUN · Capital · Positive Activist hedge fund Jana Partners is encouraging Six Flags to explore a sale.
WOR · Demand · Positive Q1 adjusted earnings and revenue beat estimates, with CEO citing rapidly growing demand for ASME tanks used in data-center liquid cooling.
INFQ · Technology · Positive Infleqtion rose a similar amount as IonQ's quantum error-decoder news lifted the broader quantum sector.
Jim Cramer Warns KB Home Could Post Weak Quarter Like Lennar
Jim Cramer said on Mad Money that KB Home is likely to report another weak quarter when it releases results after the market closes on September 22, warning that the home builder faces the same pressures Lennar has already disclosed. Lennar reported approximately $8 billion of revenue in its fiscal third quarter, but new orders fell 9% year over year to 20,879 homes, deliveries declined 3% to 20,840, the average selling price fell 3% to $372,000, and home-sale gross margin dropped to 15.8% from 17.5% a year earlier. CEO Stuart Miller said mortgage rates reached approximately 6.8% at quarter-end and that rates and affordability have driven more consumers to slow their purchase decision, prompting Lennar to cut its full-year 2026 delivery target to approximately 80,000 to 81,000 homes from 82,000 to 83,000 previously. KB Home's fiscal second-quarter results already showed revenue down 27% year over year to $1.11 billion, diluted EPS of $0.43 versus $1.50, deliveries down 23% to 2,395 homes, net orders down 4% to 3,317, and backlog value down 7% to $2.14 billion, and management guided fiscal third-quarter deliveries to 2,600 to 2,800 homes with housing gross margin of 16% to 16.6%. Hedge fund holders of Lennar slipped to 65 in the second quarter from 66 in the first, while KB Home holders fell to 34 from 37, and short interest stood at approximately 8.4% of Lennar's public float and approximately 12.9% of KB Home's.
KBH · Demand · Negative Cramer warns KB Home faces the same weak housing demand and affordability pressures that drove Lennar's orders down 9% and delivery-target cut.
LEN · Demand · Negative Lennar's new orders fell 9% YoY, deliveries declined 3%, average selling price dropped 3%, gross margin fell to 15.8%, and it cut its 2026 delivery target on weak affordability.
Costco, General Mills and KB Home Earnings Plus August New Home Sales on Tap
Investors this week will watch quarterly earnings from Costco, General Mills and KB Home alongside August new home sales data. Costco reports results on Thursday, with monthly net sales up roughly 10% in June, July and August, while analysts look for signs of slowing comparable store sales and whether higher fuel prices are pushing shoppers toward more essential-focused spending. General Mills reports on Wednesday, entering fiscal 2027 after cutting prices and increasing spending on innovation and advertising, with first-quarter organic sales growth expected below the low end of the company's full-year range and North America Retail seen as the biggest pressure point. KB Home reports on Tuesday, with analysts anticipating net new home orders to fall 3.4% as weaker affordability and consumer confidence create risk to the company's full-year delivery outlook. August new home sales data arrives Thursday, with economists forecasting sales to tick up to an annualized pace of 620,000, offering another look at how buyers are responding to elevated mortgage rates and affordability pressures.
COST · Demand · Neutral Costco reports Thursday with monthly net sales up ~10% but analysts watch for slowing comparable store sales and fuel-price-driven shifts to essentials.
GIS · Demand · Negative General Mills enters fiscal 2027 after price cuts and higher innovation/ad spending, with Q1 organic sales growth expected below the low end of its full-year range and North America Retail the biggest pressure point.
KBH · Demand · Negative KB Home reports Tuesday with analysts expecting net new home orders to fall 3.4% as weaker affordability and consumer confidence risk its full-year delivery outlook.
Trump to Host Xi for State Dinner With AI Titans as Meta Connect Kicks Off
President Trump will host Chinese leader Xi Jinping this week for their second meeting of 2026, with a state dinner on Thursday set to include OpenAI's Sam Altman and Nvidia's Jensen Huang among confirmed AI attendees. Markets are watching for a continuation of the two countries' trade truce ahead of its November expiration, though touchy subjects like Taiwan and the war with Iran could complicate talks. Meta kicks off its Connect conference on Wednesday, where it is expected to unveil a new version of its glasses, fresh off Snap's foray into the space, and Reuters reports the new wearable may be camera-free. Qualcomm's Snapdragon Summit begins Tuesday in Hawaii, putting the infrastructure side of the AI supply chain in focus. On the earnings front, Costco Wholesale Corporation and Darden Restaurants report Thursday, while KB Home reports Tuesday as mortgage rates surge again. Wall Street will also parse a busy FedSpeak schedule, with New York Fed president John Williams the highlight, alongside Barr, Jefferson, Goolsbee, Barkin, Paulson, and Hammack.
Artificial Intelligence › Edge & On-device AI Silicon Competition
Artificial Intelligence › AI Compute & Accelerator Silicon Geopolitics
META · Technology · Positive Meta kicks off Connect and is expected to unveil a new version of its glasses, possibly camera-free.
KBH · Monetary · Negative KB Home reports Tuesday as mortgage rates surge again, pressuring housing demand.
NVDA · Geopolitics · Neutral Nvidia's Jensen Huang is a confirmed AI attendee at the Trump-Xi state dinner amid trade-truce talks.
SNAP · Competition · Neutral Meta's expected new glasses come 'fresh off Snap's foray into the space,' implying competitive pressure on Snap's AR wearable efforts.
COST · Capital · Neutral Costco is only listed as reporting earnings Thursday, with no details given.
DRI · Capital · Neutral Darden is only listed as reporting earnings Thursday, with no details given.
KB Home Set to Report Q3 Fiscal 2026 Results on Sept. 22
KB Home is scheduled to report its third-quarter fiscal 2026 results, for the period ended Aug. 31, on Sept. 22 after market close. The Zacks Consensus Estimate for adjusted earnings per share has remained unchanged at 88 cents over the past 30 days, a 45.3% decline from the year-ago quarter's $1.61 per share, while the consensus revenue estimate stands at $1.29 billion, down 20.2% year over year. KB Home expects housing revenues of $1.2-$1.35 billion, down from $1.61 billion a year ago, home deliveries of 2,600 to 2,800 units versus 3,393 units a year earlier, and adjusted housing gross margin of 16-16.6% versus 18.9%. The company guides selling, general and administrative expenses to 11.3-11.9% of housing revenues, compared with 10.7% a year ago. KB Home carries an Earnings ESP of -5.32% and a Zacks Rank #5 (Strong Sell), and the model does not predict an earnings beat this time around.
KBH · Capital · Negative KB Home guides to sharply lower Q3 revenue, deliveries, and gross margin, with EPS seen down 45.3% and a Zacks Rank #5 (Strong Sell)
KB Home Stock Falls 1.21% While Broader Market Rallies
KB Home shares closed at $56.35, down 1.21%, underperforming the S&P 500's 1.66% gain. The homebuilder has lost 5.91% over the past month, while the Construction sector dropped 12.19% and the S&P 500 fell 1.49%. Analysts expect KB Home to report earnings per share of $0.88 on revenue of $1.29 billion for the upcoming quarter, declines of 45.34% and 20.14% year-over-year, respectively. For the full fiscal year, the Zacks Consensus Estimates project earnings of $3.30 per share and revenue of $5.09 billion, down 49.39% and 18.37% from the prior year. KB Home carries a Zacks Rank of 3, or Hold, and trades at a forward price-to-earnings ratio of 17.31, a premium to its industry average of 14.31.
KB Home Opens Wildfire-Resilient Townsend Community in Santee, California
KB Home has opened Townsend, a new community of three-story paired townhomes in Santee, California, priced from the mid US$700,000s and designed with ENERGY STAR certification and advanced wildfire-resilience features. The project highlights the builder's focus on personalization, energy efficiency, and wildfire-hardened construction in high-risk Southern California markets. While the opening is directionally positive for KB Home's wildfire risk and energy efficiency narrative, it is not a material shift to near-term catalysts or the key risk of softer demand and lower profitability. The company's recent universal shelf registration, which expands potential future financing options, is more relevant for investors watching catalysts. KB Home's narrative projects $5.8 billion revenue and $326.2 million earnings by 2029, with a fair value estimate of $58.25, representing a 3% upside to its current price.
KBH · · Neutral The new community opening is a positive operational development but not material to near-term catalysts or key risks like softer demand.
KB Home shares have declined 8.2% since its last earnings report, underperforming the S&P 500. The company reported second-quarter fiscal 2026 earnings of 43 cents per share, matching the Zacks Consensus Estimate but down 71.3% from a year ago, while total revenues of $1.112 billion beat estimates by 2% yet fell 27% year over year. Housing revenues dropped 27% to $1.11 billion on a 23% decline in homes delivered and a 5% drop in average selling price to $461,900. Net orders fell 4% to 3,317 homes, and the homebuilding operating income margin contracted to 2.5% from 8.6%. For fiscal 2026, KB Home narrowed its delivery guidance to 10,500-11,000 homes and housing revenue to $4.90-$5.30 billion, with housing gross margin projected between 16.1% and 16.5%.
D.R. Horton set to report Q2 earnings with flat revenue expected
D.R. Horton will announce its second-quarter earnings this Tuesday before the market opens. Analysts expect revenue to be roughly flat year over year, an improvement from the 7.4% decline in the same quarter last year. The company missed revenue estimates last quarter, reporting $7.56 billion, down 2.3% from a year earlier, though full-year guidance slightly topped expectations. Peers KB Home and Lennar have already reported mixed results, with KB Home beating estimates despite a 27.3% revenue drop and Lennar missing with a 5.2% decline. D.R. Horton shares are down 4.5% over the past month, trading at $149.00, while the average analyst price target stands at $168.
KB Home declared a quarterly dividend of $0.25 per share, matching its previous payout. The dividend is payable on August 20 to shareholders of record as of August 6, with the ex-dividend date also set for August 6. Based on the current share price, the forward yield is 1.76%.
Quanex, Masco, and Hayward Shares Plummet on Housing and Oil Fears
Shares of home construction materials companies Quanex, Masco, and Hayward fell sharply after President Trump declared the Iran ceasefire over and threatened more strikes, driving oil prices higher and lifting bond yields in an inflation scare that hit housing-related stocks. Quanex dropped 3.3%, Masco fell 3.7%, and Hayward declined 3%. The sell-off reflected a double headwind: rising yields push mortgage rates up and cool the housing outlook, while surging crude raises production and freight costs for energy-intensive building products, squeezing margins. Masco's move was notable as its shares have had only three moves greater than 5% over the past year, indicating the market considered the news meaningful.
KB Home Issues Upbeat Housing Revenue Guidance After Softer Q2 Results
KB Home reported fiscal second-quarter 2026 revenue of US$1,112.44 million and net income of US$27.35 million, both lower than a year earlier, while earnings per share from continuing operations also decreased. Despite these softer results, management issued housing revenue guidance of US$1.20 billion to US$1.35 billion for the third quarter and US$4.90 billion to US$5.30 billion for the full year, implying sequential growth. The company highlighted its pivot back to a built-to-order model, which it says will improve margin visibility and operational control. The guidance and strategic shift come amid a weaker housing backdrop and ongoing demand softness.
Homebuilders Post Best Day in a Year on Sweeping Housing Bill
Homebuilder stocks surged on Wednesday, with the iShares U.S. Home Construction ETF jumping about 6.3% in its sharpest one-day advance since July 2025, after Congress passed the 21st Century ROAD to Housing Act. KB Home led the rally with a 17.77% gain, while Dream Finders Homes rose 14.39% and Hovnanian Enterprises added 12.67%. The legislation restricts institutional investors owning 350 or more single-family homes from buying additional properties, removes the requirement for manufactured homes to be built on permanent steel chassis, and streamlines permitting and environmental reviews. The bill passed the House by a 358-32 vote and cleared the Senate earlier in the week, though President Trump announced he would not sign it until Congress passes a separate voter-identification measure. Investors appeared unconcerned, as the bill can become law without a presidential signature after 10 days.
DFH · Regulation · Positive The housing bill restricts institutional investors from buying additional single-family homes, reducing competition for homebuilders like Dream Finders Homes.
HOV · Regulation · Positive The housing bill restricts institutional investors from buying additional single-family homes, reducing competition for homebuilders like Hovnanian Enterprises.
KBH · Regulation · Positive The housing bill restricts institutional investors from buying additional single-family homes, reducing competition for homebuilders like KB Home.
KB Home, ICON, Delta rise on earnings beats and sector strength; Worthington falls on miss
KB Home shares rose 5.8% after the homebuilder reported second-quarter fiscal 2026 revenues of $1.11 billion, exceeding the Zacks Consensus Estimate of $1.09 billion. ICON Public Limited Company gained 10.9% following first-quarter fiscal 2026 adjusted earnings of $2.50 per share, topping the consensus of $2.46. Worthington Enterprises fell 6.1% after fourth-quarter fiscal 2026 revenues of $371.5 million missed the $385.7 million estimate. Delta Air Lines jumped 4.5% as airline stocks were among the session's biggest winners.
D.R. Horton and Lennar Stocks Jump After Congress Passes Housing Supply Bill
Shares of D.R. Horton and Lennar rose sharply after both chambers of Congress passed the 21st Century ROAD to Housing Act, the most significant federal housing-supply legislation since 1990. D.R. Horton jumped 6.9% and Lennar gained 6.8% as the bill aims to cut red tape, streamline environmental reviews, modernize manufactured-housing rules, and bar institutional owners of 350-plus single-family homes from buying more existing homes. The legislation is seen as a multi-year volume driver for builders by lowering construction costs and friction, while the 350-home cap may shift demand toward new construction. Adding to the positive sentiment, peer KB Home reported quarterly revenue of $1.11 billion, beating the $1.10 billion consensus, and the 10-year Treasury yield dropped below 4.5%, easing mortgage rate pressures.
Stocks Rally as Falling Crude Prices Knock Bond Yields Lower
The S&P 500 rose 0.72 percent as falling crude oil prices pushed bond yields lower, boosting equities. WTI crude tumbled more than 4 percent to a three-and-a-half-month low after more tankers openly crossed the Strait of Hormuz, increasing global supply, while the International Maritime Organization said it had received guarantees allowing hundreds of ships to exit the Persian Gulf. The drop in crude lowered inflation expectations, sending the 10-year Treasury yield down 8 basis points to a six-week low of 4.41 percent. Homebuilders and building suppliers surged after Congress passed the 21st Century Road to Housing Act, with KB Home up more than 16 percent and Builders Firstsource up more than 11 percent. Airlines and cruise operators also gained on lower fuel costs, while mining and energy stocks fell as gold, silver, copper, and crude prices declined.
Housing Stocks Back in Spotlight as Congress Passes Bipartisan Housing Bill
Pre-market futures are mostly up but off earlier highs as global AI spending concerns dominate Wall Street, with Micron Technology set to report earnings after the close. The 21st Century Road to Housing Act, a bipartisan bill passed by both houses of Congress, aims to cut time and costs for new housing by reducing red tape and giving local jurisdictions flexibility to convert unused structures into multi-family units with monetary incentives, and is scheduled to be signed into law by President Trump today. New Home Sales for May are expected to rise to a seasonally adjusted annualized rate of 632,000 units, up from the prior month, though still near the low end of the 10-year range, while the April tally showed a 6.2% decline with a 9.4 months' supply and a median new home price of $422,500. KB Home reported a 2% revenue beat but a slight earnings miss in its fiscal second quarter, while Lennar and Pulte Home are set to report in about four weeks.
KBH · Regulation · Positive Bipartisan housing bill aims to reduce red tape and incentivize multi-family conversions, benefiting homebuilders like KB Home.
LEN · Regulation · Positive Housing bill reduces regulatory barriers and provides incentives for new housing, positive for Lennar.
PHM · Regulation · Positive Housing bill cuts red tape and offers monetary incentives for housing development, benefiting PulteGroup.
Stocks Edge Higher Ahead of Micron Earnings as Oil Slump Lifts Sentiment
U.S. stock indexes are modestly higher as the market recovers from Tuesday's sharp selloff, with investors awaiting Micron Technology's earnings after the close to gauge AI demand. The S&P 500 is up 0.12%, the Dow Jones Industrial Average is up 0.21%, and the Nasdaq 100 is up 0.06%. Homebuilders and building suppliers are climbing after Congress passed the 21st Century Road to Housing Act, with KB Home up more than 16% and Builders Firstsource up more than 9%. Airline and cruise stocks are also gaining as WTI crude oil drops more than 3% to a 3.5-month low, reducing fuel costs. Mining stocks are retreating as gold, silver, and copper prices fall to multi-month lows. The 10-year Treasury yield is down 7.5 basis points to 4.422%, supported by the oil-driven decline in inflation expectations.
Cerebras drops 11% after first post-IPO earnings, FedEx falls despite beat
Cerebras shares fell 11% in premarket trading after the semiconductor company reported its first earnings since going public in May, posting a first-quarter loss of 22 cents on revenues of $193.4 million and guiding for core gross margin to shrink to between 36% and 38% in the second quarter from 46.5% in the first. FedEx shed about 6.5% even after delivering better-than-expected fiscal fourth-quarter results, which were the last before it spun off its freight business. Micron rose more than 2.5%, rebounding from a 13% drop on Tuesday and ahead of its earnings due after the bell Wednesday, while other memory stocks also recovered from a sell-off triggered by a sharp decline in South Korean tech shares, with Sandisk up more than 2%, Western Digital up more than 1%, and Seagate Technology up about 1%. KB Home added 2.5% after fiscal second-quarter revenue of $1.11 billion beat the $1.10 billion consensus, though earnings of 43 cents per share missed the 45-cent estimate. Worthington Enterprises tumbled 10% after adjusted earnings of 97 cents per share on revenue of $371.5 million fell short of FactSet expectations for $1.06 per share and $386.5 million. Wendy's surged as it became one of the most discussed stocks on Reddit's r/Wallstreetbets, with short interest around 23% of its float according to S3 Partners, potentially setting up a short squeeze. Arm Holdings rose 3% after UBS and TD Cowen raised price targets, citing an improved outlook for its CPU business amid the shift toward agentic AI. Take-Two Interactive Software gained more than 3% after announcing that presales for Grand Theft Auto 6 begin Thursday and after BTIG initiated coverage with a buy rating, saying the game will drive a multi-year improvement in earnings power.
CBRS · Capital · Negative Cerebras reported a first-quarter loss and guided for core gross margin to shrink to 36-38% from 46.5%.
FDX · Capital · Negative FedEx shares fell 6.5% despite better-than-expected fiscal Q4 results, as the market focused on the upcoming spin-off of its freight business.
KBH · Capital · Positive KB Home added 2.5% after fiscal Q2 revenue of $1.11 billion beat the $1.10 billion consensus, though EPS missed.
TTWO · Capital · Positive BTIG initiated coverage with a buy rating, citing GTA 6 presales driving multi-year earnings improvement.
TTWO · Demand · Positive Presales for Grand Theft Auto 6 begin Thursday, and BTIG initiated coverage with a buy rating citing multi-year earnings improvement.
WOR · Capital · Negative Adjusted earnings and revenue missed FactSet expectations.
FedEx and Cerebras slide on outlook while ICON and KB Home gain on results
Stock futures turned mixed Wednesday as investors assessed a tech-driven sell-off, with FedEx and Cerebras Systems among the biggest losers despite reporting quarterly beats. FedEx shares fell 7% after the shipping giant forecast fiscal 2026 adjusted earnings per share of $16.90 to $18.10, with the midpoint below consensus, overshadowing a 13% revenue jump to $25 billion and adjusted EPS of $6.31 in its fiscal fourth quarter. Cerebras Systems dropped 9% even as revenue surged 94% year-over-year to $193.4 million, after the AI chipmaker guided for second-quarter core gross margins of 36% to 38%, down sharply from 47% in the first quarter, though it also announced a multi-year agreement with OpenAI worth more than $20 billion. On the upside, ICON gained 6% after the clinical research organization posted first-quarter adjusted EPS of $2.50 and revenue of $2.03 billion, both above estimates, and highlighted net bookings of $2.88 billion with a book-to-bill ratio of 1.42. KB Home rose 4% as the homebuilder reported second-quarter revenue that exceeded expectations and narrowed its full-year housing revenue outlook to $4.9 billion to $5.3 billion, with deliveries of 10,500 to 11,000 homes.
Housing stocks in focus as affordable housing bill advances to Trump’s desk
Housing stocks are drawing attention after a U.S. housing bill advanced to President Donald Trump’s desk, aiming to boost supply, ease regulations, and limit institutional ownership of single-family homes. A quant check on related names shows LGI Homes with a rating of 3.10, D.R. Horton at 3.2, Toll Brothers at 3.03, Beazer Homes USA at 2.95, TopBuild at 2.82, PulteGroup at 2.74, Lennar at 2.11, KB Home at 2.0, NVR at 1.66, Builders FirstSource at 1.46, and Installed Building Products at 1.36.
FedEx, Cerebras, KB Home and others move after hours on earnings and executive changes
Several companies made notable moves in after-hours trading following earnings reports and executive announcements. FedEx shares fell about 6% after fourth-quarter revenue of $25.01 billion narrowly beat the $24.04 billion consensus. KB Home added 2% as fiscal second-quarter revenue of $1.11 billion topped the $1.10 billion estimate, though earnings of 43 cents per share missed the 45-cent forecast. Cerebras dropped 8% after its first post-IPO report showed a first-quarter loss of 22 cents on $193.4 million in revenue, while guiding full-year core revenue to $855 million to $865 million and current-quarter core revenue to $194 million. Nike gained 1% on news that CFO Matthew Friend will step down and be replaced by Pfizer CFO David Denton effective August 17, and that upcoming results will include a tariff refund benefit. Worthington Enterprises tumbled nearly 10% after adjusted earnings of 97 cents per share on $371.5 million in revenue missed expectations of $1.06 and $386.5 million.
KB Home reports second-quarter revenues of $1.11 billion and diluted EPS of $0.43
KB Home reported second-quarter revenues of $1.11 billion and diluted earnings per share of $0.43. Homes delivered fell 23% to 2,395, with an average selling price of $461,900, while net income dropped to $27.3 million from $107.9 million a year earlier. The company repurchased $75.0 million of common stock during the quarter and ended with a backlog of 4,526 homes valued at $2.14 billion. For the full year, KB Home projects housing revenues between $4.90 billion and $5.30 billion and deliveries of 10,500 to 11,000 homes.
FedEx, ICON, KB Home, and Worthington to Report Earnings After Hours
FedEx, ICON, KB Home, and Worthington Enterprises are scheduled to report earnings after the market closes on June 23, 2026. FedEx is expected to post earnings per share of $5.91 for the quarter ending May 31, 2026, a 2.64% decline from the same period last year, based on estimates from nine analysts. ICON plc is forecast to report $2.18 per share for the quarter ending March 31, 2026, down 28.99% year-over-year, according to three analysts. KB Home's consensus estimate stands at $0.43 per share for the quarter ending May 31, 2026, a 71.33% drop from the prior-year quarter, based on seven analysts. Worthington Enterprises is expected to deliver $1.04 per share for the quarter ending May 31, 2026, a 1.89% decrease from a year ago, according to two analysts.
FDX · Capital · Neutral FedEx is expected to report earnings per share of $5.91, a 2.64% decline year-over-year, but the actual impact depends on results vs. expectations.
KBH · Capital · Neutral KB Home is expected to report earnings per share of $0.43, a 71.33% drop year-over-year, but the actual impact depends on results vs. expectations.
WOR · Capital · Neutral Worthington Enterprises is expected to report earnings per share of $1.04, a 1.89% decrease year-over-year, but the actual impact depends on results vs. expectations.
Nasdaq plunges 882 points as AI sell-off deepens ahead of key PMI data
The Nasdaq tumbled 882 points in its second straight day of heavy selling, led by a sharp retreat in AI-related stocks. Micron dropped 8% two days before its quarterly earnings, while the Dow fell 218 points and the S&P 500 lost 103. The tech-heavy index has now shed 1,100 points since Monday's open, slipping behind the small-cap Russell 2000 in year-to-date gains. Markets await flash June PMI readings for services and manufacturing, with services last at 50.7 and manufacturing at a three-year high of 55.1. After the close, FedEx reports fiscal Q4 results, KB Home faces a projected 71.3% earnings drop, and AI chipmaker Cerebras posts its first quarterly results since its May IPO.
Jim Cramer calls KB Home a well-run home builder that tells it like it is
Jim Cramer described KB Home as a well-run home builder that tells it like it is, during a discussion where he said Iran peace negotiations could trigger an oil glut, cool inflation, and pull interest rates down. Cramer stated he is acutely focused on housing because it punches above its weight in the economy, and he plans to listen to KB Home's conference call, hoping for references to the Federal Reserve. He noted the housing industry feels dead in the water due to insufficient supply and new homes, adding that high interest rates discourage builders, with Toll Brothers being an exception because about a quarter of its homes are bought with cash.
KBH · Monetary · Positive Cramer suggests Iran peace could lower rates, benefiting homebuilders; he plans to listen to KB Home's call for Fed references.
TOL · Monetary · Neutral Mentioned as an exception because many buyers use cash, implying less sensitivity to rates, but no direct impact from news.
KB Home to Report Q2 Fiscal 2026 Earnings on June 23
KB Home is scheduled to report its second-quarter fiscal 2026 results after market close on June 23. The Zacks Consensus Estimate for adjusted earnings per share stands at 44 cents, unchanged over the past 30 days and indicating a 70.7% decline from $1.50 a year ago. Total revenues are pegged at $1.09 billion, a projected drop of 28.7% from the prior-year quarter, with housing revenues expected between $1.05 billion and $1.15 billion and home deliveries forecast at 2,250 to 2,450 units. The company’s adjusted housing gross margin is anticipated to be 15.4%, down 430 basis points year over year, while selling, general and administrative expenses as a percentage of housing revenues are expected to rise to 12.7%. KB Home currently carries a Zacks Rank of 4, or Sell, and an Earnings ESP of 0.00%, suggesting an earnings beat is unlikely this quarter.
PulteGroup Q1 Revenue Falls 12.4% as Home Builders Post Mixed Results
PulteGroup reported first-quarter revenues of $3.41 billion, a 12.4% decline from a year earlier, in line with analyst expectations but accompanied by a miss on earnings per share estimates. The results were part of a mixed quarter for the 12 home builders tracked, whose aggregate revenues missed consensus estimates by 0.6%. Taylor Morrison Home stood out with revenues of $1.39 billion, down 26.8% year on year but beating expectations by 4.1%, while NVR posted the weakest performance with revenues of $1.88 billion, down 21.7% and missing estimates by 7.8%. KB Home reported revenues of $1.08 billion, down 22.6% and missing estimates by 1.8%, and D.R. Horton reported revenues of $7.56 billion, down 2.3% and slightly below expectations. On average, the group's share prices have risen 2.9% since their latest earnings releases.
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