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KB Home stock gains after builder beats Wall Street quarterly views

Claudia Assis

KB Home shares rose more than 4% in the extended session Wednesday after the home builder reported fourth-quarter earnings above Wall Street expectations and said it expects to increase the number of homes it builds this year. KB Home said it earned $97 million, or 96 cents a share, in the quarter, compared with $84 million, or 84 cents a share, in the year-ago period. Revenue fell to $1.35 billion from $1.40 billion a year ago. Analysts polled by FactSet had expected earnings of 93 cents a share on sales of $1.34 billion for the quarter. "We believe we are well positioned for 2019, with an anticipated 10% to 15% increase in our community count," Chief Executive Jeffrey Mezger said. "In addition, we have taken proactive steps to reposition many of our existing and future communities to make our product more affordable. Our business model enables us to efficiently move with demand, leveraging our existing plan series to add smaller-square footage options to our communities, and adjusting the specification levels within our homes." KB Home stock ended the regular session up 4.1%.