Shares of KB Home (KBH) rose more than 4.5% at the close Friday in New York after the fifth-largest U.S. homebuilder reported second quarter revenue and EPS that easily topped Wall Street expectations.
Reporting before the open, the Los Angeles-based company posted EPS of $0.27 on revenues of $565 million. That reversed a $.04 loss on revenue of $524.4 million the prior year and came in well above consensus estimates for EPS of $0.19 and revenue of $563.1 million.
KB credited the improving housing market generally and the acquisitions of several large land positions in the second quarter “to reinforce the upward trajectory of [its] business.” While the homebuilder saw a dip in the number of units sold in the three months ending May 31 on a y/y basis, those units sold on average for 10% more to $319,700, boosting revenue by 8%.
KB also saw its net orders climb by 5% to 2,269 homes, while the company’s contract backlog, an indication of future sales, rose 9% y/y to 3,398 homes.
“With the momentum we have generated through the first half of the year and our robust backlog, we believe we are on track to meet our fiscal 2014 goals,” Jeffrey Mezger, president and chief executive officer of KB Home, said in a statement.
KB’s results came a day after Miami-based Lennar (LEN) reported a profit for its fiscal second quarter as the homebuilder’s bottom line was helped by a 14% increase in the average sales price. Luxury homebuilder Toll Brothers (TOL) also sold more homes at higher prices in its second quarter.