KB Home (KBH, Financial) (KBH - $33.52 – NYSE) is one of the nation's leading homebuilders and the industry has seen a strong rebound in activity that resulted from the pandemic-related issues. is set high expectations for KB Home heading into the quarter. It beat consensus estimates, raised prices to help offset expected cost inflation, and reported a solid gain in backlog. Forward guidance, however was weaker than expected partly due to strong demand putting pressure on community counts and lingering issues with the pandemic elongating the normal build cycle. The medium-term outlook for homebuilders remains favorable supported by record low mortgage rates.
From Keeley Asset Management Corp (Trades, Portfolio)'s Small Cap Dividend Value Fund fourth-quarter 2020 shareholder commentary.
