KB Home

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%.

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.

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.

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.

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.

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.

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.

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 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.

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 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.

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.