KB Home (KBH) is facing some risk factors to its EPS next year, including the market footprint it operates in, its approach favoring pricing over incentives, and its backlog projected to decline almost 25% by the end of fiscal 2025, Oppenheimer said in a note emailed Friday.

Oppenheimer analysts reduced their fiscal 2025 EPS estimates to $6.43 from $6.47 and fiscal 2026 EPS estimates to $6.20 from $6.22 for the company, mainly due to an assumption of lower housing volumes.

The analysts said their takeaways after the results of KB Home's fiscal Q3 were mixed, as the near-term demand for homes looks unstable but profitability and share repurchase activity were better than what their model predicted.

Oppenheimer reiterated its rating on the company's stock at perform.

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