KB Home (KBH) Q4 Earnings Beat, Shares Slip On Revenue Miss
Zacks Investment Research | Jan 09, 2020 08:28PM ET
KB Home (NYSE:KBH) ended fiscal 2019 on an impressive note, with fourth-quarter fiscal 2019 earnings beating analysts’ expectation. However, lower-than-expected revenues most likely hurt investors’ sentiment, prompting a decline of 2.1% in KB Home’s shares in the after-market trading session, following the news.
That said, strong demand for its built-to-order products at affordable price points, together with limited inventory in markets served drove net order growth of 38% in the quarter. Strong backlog and impressive housing gross margins will enable KB Home to improve profitability and return on equity in fiscal 2020.
Earnings & Revenue Discussion
Quarterly earnings of $1.31 per share outpaced the Zacks Consensus Estimate of 1.29 cents by 1.6% and increased 36% from a year ago.
Total revenues of $1,558.7 million missed the consensus mark of $1,599 million by 2.9%. That said, the top line grew by a notable 15.6% year over year, mainly due to higher home deliveries, partly offset by lower average selling price (ASP) of homes delivered.
KB Home Price, Consensus and EPS Surprise
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