KB Home's (KBH) Shares Jump More Than 2% On Q1 Earnings Beat
Zacks Investment Research | Mar 26, 2019 10:21PM ET
KB Home’s (NYSE:KBH) shares gained 2.4% in yesterday’s after-hour trading, after the homebuilder beat earnings expectations in the first quarter of fiscal 2019 despite reporting lower revenues. Continued progress with the Returns-Focused Growth plan drove the gross margin in the quarter.
The company highlighted that although its housing revenues, SG&A expenses ratio, and operating income suffered in the quarter due to lower net order and backlog value in the second half of 2018, its picture is relatively bright for the rest of 2019.
KB Home believes stable interest rates, stronger demand from increased consumer confidence, community growth and smaller floor plans for home buyers addressing affordability concerns are likely to drive growth through 2019.
Earnings & Revenue Discussion
Quarterly earnings of 31 cents per share outpaced the Zacks Consensus Estimate of 27 cents by 14.8% but declined 22.5% from 40 cents a year ago.
Total revenues of $811.5 million, however, missed the consensus mark of $829.3 million. The top line also declined 6.9% year over year, mainly due to lower average selling price (“ASP”) of homes delivered. The decline in net orders during the fourth quarter of 2018 impacted its first-quarter housing revenues.
KB Home Price, Consensus and EPS Surprise
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