KB Home profit slides in quarter but tops forecasts
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.