KB Home (KBH) Expands Presence Across Central Florida
Zacks Investment Research | Nov 14, 2019 09:28PM ET
KB Home (NYSE:KBH) announced the addition of three new residential communities — Casa Bella, Rivercrest at Narcoossee and Wilson Estates in Central Florida.
These affordably-priced communities will have one-story single-family homes and two-story single-family homes, with up to six bedrooms. The communities start with the price tag of mid $200,000.
Moreover, these communities will be built per the latest ENERGY STAR guidelines, which will help homebuyers save a reasonable amount in utility costs. With the addition of these new communities, the company now has 18 new-home communities in Central Florida.
The move is in line with KB Home’s ongoing brand-expansion strategy.
Community Expansion to Drive The Top Line
KB Home is aggressively investing in land acquisition to boost community count and drive revenues. The company anticipates healthy community count growth in each quarter of 2019. After investing $188 million and $132 million in fiscal first and second quarters, respectively, the company invested $174 million in new land acquisitions in fiscal third quarter.
KB Home expects land investments to drive additional community openings throughout 2020. The company also intends to generate year-over-year growth in average community count in the mid-single digit range in fiscal 2020.
Notably, during the fiscal first, second and third quarters, the company achieved 10%, 17% and 18% improvement in average community count, respectively, with growth in each of the regions served. KB Home also expects average community count to increase 10% and 12% year over year, respectively, in fiscal fourth quarter and 2019.
The company is also focused on its core KB2020 business strategy which aims to boost scale in existing geographic footprint, improve profitability per unit, increase operating margin, drive earnings and generate positive cash flow to redeploy growth as well as reduce debt.
Coming to price performance, KB Home’s shares have outperformed its Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.