KB Home (KBH) Loses Less than Expected in Q3; Backlog Bulges

September 23, 2011 10:49 AM EDT
KB Home (NYSE: KBH) stock is pushing higher Friday morning as traders are cheering third-quarter results from earlier.

According to the release, KB Home's quarterly sales fell 27 percent to $367.3 million.

KB Home reported a net loss of $9.65 million, or 13 cents per share. The number was wider than the $1.40 million loss reported in the same period last year.

Results were mixed versus the Street: revenue was expected to be $380.34 million while the loss was expected to be 19 cents per share.

KB Home attributes much of the decline to a 31 percent decrease in the number of homes delivered, partially offset by a 6 percent year-over-year increase in the average selling price. The homebuilder said it delivered a total of 1,603 homes at an average of $227,400 per unit.

Net orders increased 40 percent to 1,838 units. KB Homes backlog increased 22.5 percent to 2,657, while total value of the backlog rose 22.8 percent to $559.33 million.

Housing gross margin contracted from 17.5 percent to 16.9 percent.

"We generated year-over-year growth in both net orders and backlog in all four of our operating regions. We also improved our bottom line results by narrowing our net loss substantially from the second quarter, and continued our sequential improvement in key financial metrics in 2011, including our housing gross margin and selling, general and administrative expense ratio," commented CEO Jeffrey Mezger. "We remain carefully focused on extending and sustaining the positive sequential trends we have established, and ending the year with a strong fourth quarter, giving us momentum as we enter 2012."

KB Home is up about 2 percent Friday.

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