Earnings for KB Home beat expectations, but revenue falls short

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KB Home said Tuesday that its third-quarter net income grew more than eightfold. The homebuilder’s earnings topped analysts’ expectations, but revenue fell short.

FILE/ASSOCIATED PRESS  FILE/ASSOCIATED PRESS
FILE/ASSOCIATED PRESS
FILE/ASSOCIATED PRESS

For the three months ended Aug. 31, KB Home earned $27.3 million, or 30 cents per share. That’s up sharply from $3.3 million, or 4 cents per share, in the prior-year period. Analysts forecast earnings of 21 cents per share, according to a FactSet poll.

The results were helped by lower interest expenses which fell to $11.3 million from $23.1 million in the quarter.

KB Home’s revenue increased 29 percent, to $549 million, as the average sales price rose 22 percent. Wall Street predicted higher revenue of $568.2 million.

Home deliveries climbed 6 percent to 1,825 homes. This is the eighth consecutive quarterly increase for the Los Angeles company.

THE STOCK

KB Home (KBH)

Tuesday’s close:

$17.76 ▲ 0.73, or 4.29%

52-week range $13-25

Annual dividend $0.10

Dividend yield 0.6%

Price-earnings ratio * lost money

Total return YTD 13%

1-year 22%

3-year ** 15%

5-year* -1%

Market value $1.5 billion

Note: Total returns through Sept. 24

* Trailing 12 months; ** Annualized

Source: FactSet, Associated Press


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