Categories AlphaGraphs, Earnings, Other Industries

KB Home stock jumps on upbeat Q3 profit

Homebuilder KB Home (KBH) reported a 74% jump in earnings for the third quarter helped by continued growth in its core homebuilding business. The bottom came in above analysts’ expectations, while the top line missed consensus. The strong results, which came at a time the housing market is facing headwinds, helped the company’s stock reverse its downtrend and gained over 5% in the after-hours session.

Net income for the quarter climbed 74% to $87.5 million, and earnings soared 71% to $0.87 per share. Revenue increased 7% to $1.23 billion helped by healthy demand in its served markets and effective execution on its distinctive customer-centric operating model.

KB Home Q3 2018 Earnings Infographics

The company 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, while 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.

Meanwhile, investors are concerned on what JPMorgan calls a “fairly tepid” housing recovery. Adding more woes, Freddie Mac estimates annual home sales to come just below last year. Also, the housing and other economic data may be clouded in coming months by fallout from Hurricane Florence.

Shares of KB Home ended Tuesday’s regular session down 0.94% at $25.29 on the NYSE. The stock had fallen over 20% for the year so far, while it had risen more than 19% for the past year.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top