KB Home (NYSE:KBH) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.56%.
KB Home Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $-0.04 in the quarter versus EPS of $-0.31 in the year-earlier quarter.
Revenue: Rose 73.16% to $524.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: KB Home reported adjusted EPS loss of $0.04 per share. By that measure, the company beat the mean analyst estimate of $-0.07. It beat the average revenue estimate of $450.8 million.
Quoting Management: “Our strong second quarter results demonstrate the successful execution of our business strategies and improved operating leverage,” said Jeffrey Mezger, president and chief executive officer. “In particular, our ongoing investment strategy to reposition our operations continues to produce favorable returns. Combined with our community placement and product initiatives, our actions to optimize pricing and margins while maintaining a healthy pace of net orders per community have generated substantial increases in our net order value, average selling price, revenues and operating income, and significantly expanded our housing gross margin. KB Home is well positioned in some of the strongest housing markets across the country. With the limited supply of homes available for sale and robust demand in many of our served markets, we have deliberately emphasized price and value creation over sales pace to effectively optimize our land assets. Reflecting these strategic priorities, our overall net order unit growth moderated, while our net order value increased significantly from a year ago.”
Key Stats (on next page)…