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KB Home beats 1Q net income and revenue expectations

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NEW YORK — KB Home on Friday reported better-than-expected first-quarter financial results on a boost in home sales and higher prices as the housing market continues its recovery.

The Los Angeles-based homebuilder said it successfully opened 32 new home communities in the quarter and is positioned well as the key spring selling season approaches. The results come days after the Commerce Department reported a drop in new home sales in February because of fierce winter weather in the Northeast and Midwest. But, housing analysts expect sales of new homes to rebound in spring.

KB Home earned $7.8 million, or 8 cents per share, marking a 26 percent decline from a year ago because of higher costs. Earnings, adjusted for non-recurring gains, were 7 cents per share. Revenue jumped 29 percent to $580.1 million.

The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 2 cents per share while seven analysts surveyed by Zacks expected $470.7 million in revenue on average.

"With our expanding community count, we are poised to generate further momentum in our business and prepared to capture pent-up demand for housing as it is unlocked by improvement in fundamental demographic, economic and housing market dynamics," said President and CEO Jeffrey Mezger, in a statement.

On Thursday, fellow homebuilder Lennar Corp. also reported better-than-expected financial results on a boost in home sales and higher sales prices.

Shares of KB Home rose 92 cents, or 6.6 percent, to $15 in morning. The stock had fallen 15 percent since the beginning of the year and is down 18 percent in the last 12 months.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KBH at http://www.zacks.com/ap/KBH

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Keywords: KB Home, Earnings Report

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