KB Home profit slides in quar­ter but tops fore­casts

Los Angeles Times - - TECHNOLOGY - As­so­ci­ated press

Shares of KB Home rose Fri­day af­ter the com­pany re­ported bet­ter-than-ex­pected re­sults for the sec­ond quar­ter, de­liv­ered more homes for a higher av­er­age selling price and said its back­log of or­ders surged.

The home builder said its po­ten­tial fu­ture hous­ing rev­enue in back­log grew 57% to $1.61 bil­lion com­pared with last year, re­flect­ing sub­stan­tial in­creases in each of the com­pany’s re­gions.

The Los An­ge­les com­pany also said the num­ber of homes it de­liv­ered in the quar­ter climbed 2% to 1,787, and the av­er­age selling price ad­vanced 6% to $338,500.

KB Home earned $9.6 mil­lion, or 10 cents a share, in the three months ended May 31. That was down 64% from $26.6 mil­lion, or 27 cents, a year ear­lier. The de­cline re­flected rises in its in­come tax and sev­eral other ex­penses.

The com­pany said its home-build­ing costs and ex­penses climbed 14% to $602.9 mil­lion in the quar­ter.

The av­er­age es­ti­mate of an­a­lysts was for earn­ings of 9 cents a share.

To­tal rev­enue ad­vanced 10% to about $623 mil­lion. That missed the av­er­age forecast for $655 mil­lion.

Shares of KB Home jumped $1.41, or 9.4%, to $16.37 on Fri­day.

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