KB Home beats earnings expectations; stock soars

Written By kolimtiga on Jumat, 20 Maret 2015 | 22.25

Shares of KB Home soared Friday morning after the Los Angeles home builder reported first-quarter earnings that beat Wall Street expectations.

The company, one of the nation's largest home builders, said revenue for the quarter ended Feb. 28 hit $580.1 million. That was up 29% compared to the same period a year earlier, as the firm sold more homes at higher prices.

Net income was $7.8 million, or 8 cents per share, compared to $10.6 million, or 12 cents per share, a year earlier.

Analysts had expected earnings of 2 cents per share on revenue of $476.5 million, according to FactSet Research Systems Inc.

The company now has 25% more open communities than a year earlier. That expansion will enable KB to benefit from an improving housing market during the spring buying season, CEO Jeffrey Mezger said.

In morning trading, KB shares rose 93 cents, or 6.6%, to $15.01.

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Copyright © 2015, Los Angeles Times

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