KB Home reports mixed results for Q3

KB Home (NYSE: KBH) reported mixed results for third quarter 2019. Earnings of $0.73 per share surpassed the consensus estimates, while revenue of $1.16 billion missed the analysts’ views. Analysts had expected the homebuilder to post earnings of $0.66 per share on revenue of $1.17 billion in the third quarter. KB Home stock was down about 2% in the extended trading session.

Shares of KB Home hit a new 52-week high ($32.48) today as the analyst firm Raymond James upgraded KBH stock to “outperform” and on the strong sales of the newly built homes in the month of August.

Earnings decreased to $68 million or $0.73 per share in the three months ended August 31, 2019 from $87 million or $0.87 per share in the prior-year period. Revenue decreased 5% year-over-year.

Net orders for the third quarter grew 24% to 3,325, while backlog rose 14% to 6,230 homes. KB Home delivered 3,022 homes in the four regions during the third quarter compared to 2,988 homes in the third quarter of 2018.

“With year-over-year growth in both revenues and gross profit margin anticipated for our fourth quarter, we are on track for a strong finish to 2019, the third year of our Returns-Focused Growth Plan. We expect to continue to grow our community count in 2020, and, together with our solid pace and $2.3 billion backlog, we believe we are well positioned for an excellent start to the new year,” said CEO Jeffrey Mezger.

KB Home’s rival Toll Brothers (NYSE: TOL) reported its third quarter 2019 results last month. While the company topped Street’s estimates for the quarter, it reported a drop in gross margin and orders.

KBH stock had surged 69% so far in this year and 28% in the past 52-weeks.

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