KB Home Shares Climb After Better-Than-Expected Q2 Results

KB Home KBH shares are trading higher after the company reported its second-quarter financial results Tuesday. Here's a look at the details. 

The Details: KB Home reported quarterly earnings of $2.15 per share, which beat the analyst consensus estimate of $1.78 by 20.79%. Quarterly sales came in at $1.71 billion, which beat the analyst consensus estimate of $1.651 billion by 3.57%.

KB Home said homes delivered were 3,523, compared to 3,666 year-over-year, and the average selling price increased to $483,000, up from $479,500. The company’s ending backlog homes of 6,270 and ending backlog value of $3.12 billion were down 14% and 10%, respectively.

“We produced solid results in our 2024 second quarter, with our key metrics above the high end of our guidance ranges,” said Jeffrey Mezger, chairman and CEO of KB Home.

“Buyers remained resilient in their desire for homeownership despite the volatility in mortgage interest rates. Our pace of monthly net orders per community was one of our highest second quarter levels in many years, which we believe reflected the compelling personalized choice that our Built to Order model offers to meet each buyer’s lifestyle and budget.”

Outlook: KB Home sees fiscal year revenue in a range of $6.7 billion to $6.9 billion, versus the $6.74 billion estimate, and the average selling price in the range of $485,000 to $495,000.

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Shares of homebuilders moved lower during regular trading Tuesday in sympathy with Lennar Corp LEN, which fell after reporting second-quarter earnings and issuing guidance. KB Home shares closed Tuesday's regular session down 2.13% at $68.04. 

KBH Price Action: According to Benzinga Pro, KB Home shares are up 1.72% after-hours at $69.74 at the time of publication Tuesday.

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