LOS ANGELES — Shares of KB Home jumped Friday after the custom home builder reported better-than-expected results for the second-quarter, delivered more homes for a higher average selling price and said its backlog of orders spiked.
Its shares jumped more than 7 percent in morning trading.
The Los Angeles-based home builder said its potential future housing revenues in backlog grew 57 percent to $1.61 billion compared to last year, reflecting "substantial" increases in each of the company's regions.
The company also said the number of homes it delivered in the quarter climbed 2 percent to 1,787, and the average selling price advanced 6 percent to $338,500.
Overall, KB Home earned $9.6 million, or 10 cents per share, in the three months ended May 31. That was down 64 percent from$26.6 million, or 27 cents per share, a year ago. The decline reflected rises in its income tax and several other expenses.
The company said its homebuilding costs and expenses climbed 14 percent to $602.9 million in the quarter.
The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share.
Total revenue advanced 10 percent to about $623 million. That missed the average Street forecast for $655 million.
Shares of KB Home jumped 7.5 percent, or $1.12, to $16.08 in midday trading, as broader indexes slipped.
That stock price had fallen almost 10 percent since the beginning of the year, as of Thursday's close. The stock has decreased 14 percent in the last 12 months.
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
Keywords: KB Home, Earnings Report