LOS ANGELES - KB Home (NYSE: NYSE:KBH), a prominent homebuilding company in the United States, announced today the appointment of Cheryl J. Henry to its Board of Directors. Henry, who has a wealth of experience in the restaurant industry, will also join the company's Nominating and Corporate Governance Committee. Her term is set to conclude at the 2025 Annual Meeting of Stockholders, where she will be up for election by the company's shareholders.
With a notable background, Henry previously held the position of President, CEO, and Chairwoman at Ruth's Hospitality (NASDAQ:RUTH) Group, Inc., known for its Ruth's Chris Steak House chain. Her career at Ruth's Chris included time as Chief Operating Officer and other senior roles, culminating in her leadership as CEO. Beyond the restaurant sector, Henry has also served as Chief of Staff to the Mayor of Orlando and currently holds a board position at Cracker Barrel (NASDAQ:CBRL) Old Country Store, Inc. (NASDAQ: CBRL).
Jeffrey Mezger, Chairman and CEO of KB Home, expressed enthusiasm for Henry's election, highlighting her executive experience and strategic insight. He noted her potential to offer valuable contributions to the company, particularly citing her strong connections within Florida, a key market for KB Home.
KB Home has established itself as a leading homebuilder over its 65-year history, with operations across 47 markets and a commitment to sustainability and customer satisfaction. The company prides itself on its personalized homebuying experience and has built over 680,000 homes to date. It is recognized for its energy-efficient building practices and has delivered more ENERGY STAR® certified homes than any other builder.
The information in this article is based on a press release statement from KB Home.
In other recent news, KB Home's Chief Financial Officer, Jeff Kaminski, has announced his retirement set for early 2025. Kaminski, who has been with the company for over 14 years, will assist in transitioning his responsibilities until the filing of the company's 2024 Annual Report. In the meantime, the company is actively seeking a successor.
Recent developments also include KB Home's robust financial results for the third quarter of fiscal 2024. The company reported revenues exceeding $1.75 billion and diluted earnings per share of $2.04, despite falling short of BTIG's estimate. The quarter saw an 8% increase in home deliveries, reflecting strong market demand.
However, the company's third-quarter earnings were slightly impacted by reduced gross margins and average selling prices. BTIG maintained a neutral rating on KB Home following these results and adjusted its full-year 2024 EPS estimate for KB Home downward to $8.43 from the previous $8.55. Yet, the firm raised its FY25 EPS estimate for KB Home to $8.95 from $8.60, factoring in the company's revenue goal of $7.5 billion for fiscal year 2025.
KB Home continues to demonstrate a commitment to growth through significant investments in land acquisition and development, and a comprehensive share repurchase program. Despite a 15% year-over-year decrease in backlog, the company's management maintains a healthy liquidity position of $1.46 billion, indicating a cautiously optimistic outlook for the future.
InvestingPro Insights
KB Home's recent appointment of Cheryl J. Henry to its Board of Directors comes at a time when the company is showing strong financial performance and market positioning. According to InvestingPro data, KB Home boasts a market capitalization of $5.85 billion and a P/E ratio of 9.94, indicating a potentially undervalued stock relative to its earnings.
The company's financial health is further underscored by several InvestingPro Tips. Notably, KB Home has maintained dividend payments for 39 consecutive years, demonstrating a commitment to shareholder returns that aligns with its long-standing presence in the homebuilding industry. This consistency in dividend payments could be particularly attractive to investors looking for stable income streams.
Additionally, KB Home's management has been aggressively buying back shares, which often signals confidence in the company's future prospects and can potentially increase shareholder value. This strategy, combined with the company's strong return over the last year and decade, as highlighted by InvestingPro Tips, suggests that KB Home is not only performing well in the short term but also has a track record of long-term value creation.
The appointment of Henry, with her extensive experience in customer-centric industries, could further enhance KB Home's focus on customer satisfaction, which is already a key part of its business model. This aligns well with the company's personalized homebuying experience mentioned in the article.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips that could provide deeper insights into KB Home's financial position and market performance.
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