KB Homes Earnings Boosted By Core Homebuiding

KB Homes reported better than expected Q3 earnings after the market Tuesday with soaring revenue from its core line despite the U.S. housing recovery stalling. $KBH is benefitting from higher selling prices and increased consumer confidence. The stock rose 5% after the release.

KB Homes reported better than expected Q3 earnings after the market Tuesday with soaring revenue from its core line despite the U.S. housing recovery stalling. $KBH is benefitting from higher selling prices and increased consumer confidence. The stock rose 5% after the release.

kb home

KB Home NYSE: KBH Beat Earnings After Close Tuesday

 $0.87 Beat $0.78 EPS AND $1.23 billion Missed $1.27 billion forecast in revenue. 

Earnings 

KB Homes earned net income for the quarter of  $87.5 million, with  earnings jumping 71% to $0.87 per share. Revenue rose 7% to $1.23 billion buoyed by healthy demand in its served markets and effective execution on its distinctive customer-centric operating model.

KB Home NYSE: KBH

Market Reaction After hours 26.82 +1.53 (6.05%)

KBH Earnings Q3 18

Highlights and Outlook

  • KBH delivered a total of 2,988 homes during the quarter, up 8% compared to last year.
  • The average selling price of a single residential unit declined slightly to $408,200.
  • Net orders for the third quarter increased 3% to 2,685
  • Net order value fell 5% to $1.02 billion.
  • The number of homes in ending backlog increased slightly to 5,484 while ending backlog value decreased 4% to $2.04 billion.
  • The decrease in backlog value was mainly due to a shift in geographic mix from its West Coast region.

Source: KB Homes, Alpha Street

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