KB Home (KBH) Baffles with Surprise Q3 Profit Amid Smaller Presence; Backlog Improves
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KB Home (NYSE: KBH) shares are ticking higher Friday morning following stronger than expected third-quarter earnings results issued earlier.
Revenue improved 15.6 percent to $424.5 million, from $367.3 million in the same period last year. The jump higher was bolstered by a 8 percent increase in average selling price as well as a 7 percent rise in home deliveries.
Sales growth accelerated from an 11 percent jump the prior quarter.
KB also swung to profit of $3.26 million, or 4 cents per share, from a loss of $9.65 million in last years third quarter.
Overall, the market expected revs of $430.1 million and a quarterly loss of 16 cents per share.
KB reported that its backlog was up 33 percent, down from a 38 percent increase last year and up from a 22 percent increase in the prior quarter.
CEO Jeffrey Mezger commented that improvement across several metrics was particularly impressive given that KB "operated with fewer communities." He continued, "At the same time, it is clear that the recovery in housing is gaining momentum across the country as inventory levels are declining and home prices are on the rise. In particular, we are seeing dramatic improvement in California, where we are the state's largest homebuilder, as the continued strengthening in the coastal markets is now spreading inland to Sacramento, the Central Valley and the Inland Empire."
Shares are up about 0.1 percent ahead of the bell Friday.
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Revenue improved 15.6 percent to $424.5 million, from $367.3 million in the same period last year. The jump higher was bolstered by a 8 percent increase in average selling price as well as a 7 percent rise in home deliveries.
Sales growth accelerated from an 11 percent jump the prior quarter.
KB also swung to profit of $3.26 million, or 4 cents per share, from a loss of $9.65 million in last years third quarter.
Overall, the market expected revs of $430.1 million and a quarterly loss of 16 cents per share.
KB reported that its backlog was up 33 percent, down from a 38 percent increase last year and up from a 22 percent increase in the prior quarter.
CEO Jeffrey Mezger commented that improvement across several metrics was particularly impressive given that KB "operated with fewer communities." He continued, "At the same time, it is clear that the recovery in housing is gaining momentum across the country as inventory levels are declining and home prices are on the rise. In particular, we are seeing dramatic improvement in California, where we are the state's largest homebuilder, as the continued strengthening in the coastal markets is now spreading inland to Sacramento, the Central Valley and the Inland Empire."
Shares are up about 0.1 percent ahead of the bell Friday.
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