KB Home (KBH) Tops Q1 EPS by 10c

KB Home (NYSE: KBH) reported Q1 EPS of $1.02, $0.10 better than the analyst estimate of $0.92. Revenue for the quarter came in at $1.14 billion versus the consensus estimate of $1.21 billion.

• Homes delivered rose 4% to 2,864, their highest first-quarter level since 2008.
• Average selling price increased 2% to $397,100
• Backlog Value Increased 74% to $3.7 Billion

“We begin 2021 with positive momentum continuing across our busines

s. We achieved a 62% increase in our first quarter diluted earnings per share primarily driven by substantial growth in our gross margin to 21.1%, excluding inventory-related charges. Multiple factors contributed to our significantly higher profitability, in particular, our effective management of order pace, price and starts to optimize our assets and generate a strong return on each community,” said Jeffrey Mezger, Chairman, President and Chief Executive Officer. “The combination of healthy housing market conditions and our customer-centric approach produced a 23% year-over-year increase in our net orders to nearly 4,300 homes. The ongoing strength in our order activity reflects the favorable demographics underlying demand. Millennials, the largest adult population in the U.S., are now in their prime homebuying years and continue to represent our largest cohort of buyers, underscoring our competitive advantage in serving first-time buyers and success in building homes in desirable locations at affordable price points.”

“With our full year coming into better view, supported by a 74% year-over-year increase in our backlog value and our ability to match housing starts to net orders, we believe we are now even better positioned for meaningful growth in 2021,” continued Mezger. “We are executing on our plan to expand our scale while driving both margins and returns higher.”

For earnings history and earnings-related data on KB Home (KBH) click here.

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