Homebuilder KB Home (NYSE:KBH) will be reporting results tomorrow after the bell. Here’s what to look for.

KB Home beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $1.71 billion, down 3.1% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ backlog sales and operating margin estimates.

Is KB Home a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting KB Home’s revenue to grow 8.9% year on year to $1.73 billion, a reversal from the 14% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.07 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. KB Home has missed Wall Street’s revenue estimates twice over the last two years.

Looking at KB Home’s peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lennar delivered year-on-year revenue growth of 7.9%, beating analysts’ expectations by 2.8%, and FedEx reported flat revenue, falling short of estimates by 1.5%. Lennar traded down 5.2% following the results while FedEx was also down 15.3%.

Read our full analysis of Lennar’s results here and FedEx’s results here.

Investors in the industrials segment have had steady hands going into earnings, with share prices flat over the last month. KB Home is up 3.3% during the same time and is heading into earnings with an average analyst price target of $77.92 (compared to the current share price of $87.69).

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