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.
KB HomeCramer warns KB Home faces the same weak housing demand and affordability pressures that drove Lennar's orders down 9% and delivery-target cut.
Lennar CorporationLennar'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.
