By Connor Hart
KB Home posted higher revenue and profit in its fiscal fourth quarter, as housing market conditions improved and consumers continued buying homes.
The homebuilder on Monday reported a profit of $190.6 million, or $2.52 a share, for its three months ended Nov. 30, compared with $150.3 million, or $1.85 a share, in the same quarter last year. Analysts polled by FactSet had forecast per-share earnings of $2.44.
Revenue jumped 20%, to $2 billion, just ahead of the $1.99 billion that analysts were looking for, according to FactSet.
The company said that home orders increased 41%, to 2,688, with order value also jumping 41%, to $1.32 billion. Overall, the average selling price rose 3%, to $501,000, and homes delivered increased 17%, to 3,978.
Shares jumped 8.3%, to $69.45, in after-hours trading.
Chief Executive Jeffrey Mezger said faster build times helped buoy results. "Buyers continued to demonstrate a desire for homeownership and housing-market conditions improved relative to last year, despite ongoing mortgage interest-rate headwinds," he added.
Looking forward, Mezger said the company would continue to focus on expanding its scale, profitability and returns in 2025.
For the year, KB Homes expects housing revenues between $7 billion and $7.5 billion, the midpoint of which is just below the $7.29 billion that analysts polled by FactSet are projecting. It guided for an average selling price in the range of $488,000 to $498,000.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 13, 2025 16:44 ET (21:44 GMT)
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