Q2 Rundown: KB Home (NYSE:KBH) Vs Other Industrials Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how KB Home (NYSE:KBH) and the rest of the industrials stocks fared in Q2.
Traditionally, industrials companies--while diverse in nature--have built competitive advantages via some combination of economies of scale, brand recognition, and strong relationships with customers such as manufacturers or contractors. In recent decades, secular trends like energy efficiency and automation are driving innovation, leading to incremental demand. However, these companies are still at the whim of macroeconomic health, which tends to be cyclical and can be impacted heavily by factors such as interest rates. Shocks like geopolitical conflicts can also impact this increasingly global industry.
The 11 industrials stocks we track reported a slower Q2; on average, revenues missed analyst consensus estimates by 1.9%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and industrials stocks have held roughly steady amidst all this, with share prices up 3% on average since the previous earnings results.
KB Home (NYSE:KBH)
The first homebuilder to be listed on the NYSE, KB Home (NYSE:KB) is a homebuilding company targeting the first-time home buyer and move-up buyer markets.
KB Home reported revenues of $1.71 billion, down 3.1% year on year, exceeding analysts' expectations by 3.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts' earnings estimates.
“We produced solid results in our 2024 second quarter, with our key metrics above the high end of our guidance ranges,” said Jeffrey Mezger, Chairman and Chief Executive Officer.
KB Home achieved the biggest analyst estimates beat of the whole group. The stock is up 12% since reporting and currently trades at $76.26.
Is now the time to buy KB Home? Access our full analysis of the earnings results here, it's free.
Best Q2: Apogee (NASDAQ:APOG)
Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ:APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Apogee reported revenues of $331.5 million, down 8.3% year on year, in line with analysts' expectations. It was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $61.37.
Is now the time to buy Apogee? Access our full analysis of the earnings results here, it's free.
Weakest Q2: Worthington (NYSE:WOR)
Founded by a steel salesman, Worthington Enterprises (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.
Worthington reported revenues of $318.8 million, down 13.6% year on year, falling short of analysts' expectations by 9.6%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 4.5% since the results and currently trades at $47.85.
Read our full analysis of Worthington's results here.
Lennar (NYSE:LEN)
One of the largest homebuilders in America, Lennar (NYSE:LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.
Lennar reported revenues of $8.77 billion, up 9% year on year, surpassing analysts' expectations by 2.5%. Overall, it was an ok quarter for the company with a decent beat of analysts' earnings estimates but a miss of analysts' backlog sales estimates.
Lennar delivered the fastest revenue growth among its peers. The stock is up 2.2% since reporting and currently trades at $160.
Read our full, actionable report on Lennar here, it's free.
Fastenal (NASDAQ:FAST)
Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Fastenal reported revenues of $1.92 billion, up 1.8% year on year, in line with analysts' expectations. Revenue aside, it was an ok quarter for the company with a narrow beat of analysts' earnings estimates .
The stock is up 1.9% since reporting and currently trades at $65.42.
Read our full, actionable report on Fastenal here, it's free.
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