Profit Jumps for KB HomeTuesday, September 24, 2013
KB Home on Tuesday said that it sold more homes at higher prices in its fiscal third quarter, resulting in a significant rise in net income.
The Los Angeles homebuilder reported net income of $27.3 million (30 cents a share) for the quarter ended Aug. 31, 650 percent higher than in the same period a year earlier. Revenue rose 29 percent to $549 million.
Analysts surveyed by Thomson Reuters on average expected the company to report net income of 21 cents a share on revenue of more than $569 million.
Homes delivered increased 6 percent to 1,825 homes, with the average selling price up 22 percent to $299,100.
Chief Executive Jeffrey Mezger noted that the company turned a profit during the first nine months of the fiscal year, the first time the company has been able to do this since 2006, before the recession hit.
Shares closed up 73 cents, or 4 percent, to $17.76 on the New York Stock Exchange.