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Shares of homebuilder KB Home misses 4Q net income expectations; shares drop to 2-year low

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LOS ANGELES — Shares of KB Home fell to a two-year low Tuesday, after the homebuilder's fourth-quarter earnings missed expectations and its CEO said demand in some of its markets was weakening.

The company reported net income of $852.8 million, or $8.36 per share, compared with $28.1 million, or 31 cents per share, in the same quarter the year before. Most of the gain was due to an income tax benefit of $824.2 million it received during the quarter.

Earnings, adjusted for pretax gains, were 27 cents per share, falling short of the 52 cents per share analysts surveyed by Zacks Investment Research expected.

Revenue rose 29 percent to $796 million, exceeding Street forecasts. Analysts expected $778.9 million, according to Zacks.

For the year, the company said profit climbed to $918.3 million, or $9.25 per share. Revenue climbed 14 percent to $2.4 billion.

CEO Jeffrey Mezger said in a conference call with analysts Tuesday that the company experienced "soft demand" in some locations as the quarter progressed. KB Homes operates in markets from Arizona to Virginia.

Shares fell of KB Home fell $2.70, or 16.3 percent, to close at $13.87. Earlier, they fell as low as $13.40, their lowest since September 2012.

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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. KBH stock research report from Zacks.

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Keywords:KB Home,Earnings Report

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