KB Home posts higher 4Q net income, revenue

Increased home sales, prices boost homebuilder KB Home's 4Q profit; results miss Street views

Associated Press

NEWS: KB Home's fiscal fourth-quarter net income climbed more than threefold as the homebuilder sold more homes at higher prices. The latest results fell short of Wall Street's expectations, however, sending its shares sharply lower Thursday.

DETAILS: The Los Angeles-based builder said home deliveries rose 4 percent to 2,038 homes. Average selling price grew 11 percent to $301,100. Net new home orders in the September-November period were flat from a year earlier at 1,556. Its backlog of homes under contract stood at 2,557 at the end of the quarter, slightly lower than in the prior-year period.

NUMBERS: KB Home reported net income of $28.1 million, or 31 cents per share, for the three months ended Nov. 30. That compares with net income of $7.7 million, or 10 cents per share, in the prior-year quarter.

Analysts' consensus forecast called for earnings of 46 cents per share, according to FactSet.

Revenue increased 7 percent to $618.5 million from $578.2 million. Analysts predicted $664.7 million.

Net income for fiscal 2013 totaled about $40 million, or 46 cents per share, compared with a loss of about $59 million, or 76 cents per share, the previous year. The last time the builder posted a full-year profit was 2006.

Annual revenue jumped 34 percent to $2.1 billion from $1.56 billion.

STOCK: KB Home shares ended regular trading down $1.08, or about 6 percent, at $16.47. The stock shed 11 cents to $16.36 in extended trading.

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