KB Home (NYSE: KBH) reported Q2 EPS of $0.27, $0.07 better than the analyst estimate of $0.20. Revenue for the quarter came in at $565 million versus the consensus estimate of $563.1 million.

• The Company delivered 1,751 homes in the current quarter, compared to 1,797 homes in the second quarter of 2013.
• The overall average selling price of $319,700 rose $29,300, or 10%, from the second quarter of 2013, marking the seventh consecutive quarter of double-digit year-over-year percentage growth in the Company’s average selling price.
  • The year-over-year increase in the second quarter average selling price reflected the Company’s continued focus on positioning its new home communities in land-constrained locations that typically feature higher household incomes and strong demand, the Company’s actions to optimize home sales, and generally favorable market conditions.
  • Average selling prices were higher across all of the Company’s homebuilding regions compared to the 2013 second quarter, with increases ranging from 9% in the Southeast region to 23% in the Southwest region.

Backlog and Net Orders

• Potential future housing revenues in backlog at May 31, 2014 grew 24% to $1.03 billion from $826.6 million at May 31, 2013, reflecting an increase in the number of homes in backlog and a higher average selling price.
  • The Company’s quarter-end backlog value exceeded $1.00 billion for the first time since August 31, 2008.
  • The Company’s backlog was comprised of 3,398 homes at May 31, 2014, up 9% from 3,128 homes at May 31, 2013.
• Total net order value increased 19% to $763.2 million for the 2014 second quarter, up from $639.6 million for the year-earlier quarter.
  • Each of the Company’s four homebuilding regions reported year-over-year growth in net order value, ranging from 13% in the Southeast region to 26% in the Central region.
• Reflecting the Company’s investments in land and land development, net orders rose to 2,269, up 5% from 2,162 for the year-earlier quarter, and the average community count increased 7% to 191 from 178 for the year-earlier quarter.
  • The second quarter cancellation rate as a percentage of gross orders was 28% in 2014, compared to 27% in 2013. As a percentage of beginning backlog, the second quarter cancellation rate was 30% in 2014 and 29% in 2013.

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