KB Home (NYSE: KBH), a leading U.S. homebuilder, witnessed a 10.94% surge in its stock price during after-hours trading on Monday following the release of its fourth-quarter and full-year 2024 financial results.

The company reported strong fourth-quarter performance, with revenue increasing by 19% year-over-year to $2 billion, surpassing Wall Street's estimates of $1.99 billion. KB Home's diluted earnings per share (EPS) of $2.52 also exceeded analysts' expectations of $2.44, driven by higher home deliveries and robust net orders.

During the quarter, KB Home delivered 3,978 homes, representing a 17% increase from the prior year, while its average selling price rose by 3% to $501,000. Moreover, the company's net orders soared by 41% year-over-year to 2,688, indicating strong demand for its products.

Looking ahead to fiscal 2025, KB Home provided an optimistic outlook, forecasting housing revenues in the range of $7 billion to $7.5 billion. The company expects its average selling price to be between $488,000 and $498,000 and anticipates a homebuilding operating income margin of approximately 10.7%, assuming no inventory-related charges.

Analysts and investors welcomed KB Home's upbeat results and guidance, interpreting the strong performance as a sign of improving housing market conditions and resilient demand for homeownership despite ongoing mortgage interest rate headwinds. The company's ability to capitalize on this demand and deliver solid growth in key metrics contributed to the significant after-hours stock surge.