KB Home (NYSE:KBH) late Wednesday posted better-than-expected earnings results, helped by a growing backlog and higher home selling prices.
The Los Angeles-based company reported Q4 EPS of $0.40, which was $0.01 better than the $0.39 that analysts had expected. Revenue rose 20.7% from last year to $1.19 billion, also topping Wall Street’s estimate of $1.15 billion.
KBH noted that net orders for the latest period gained 20% to 2,254, up from a 16% growth rate in the prior quarter. Net order value jumped 27% to $855.9 mln.
Homes in its backlog as of Nov. 30, 2016 totaled 4,420, up 11%. Deliveries grew 19% to 3,060 homes, and the average selling price gained 2% to $387,400.
The company commented via press release:
“With healthy net order activity in the fourth quarter contributing to our highest backlog value level in 10 years, we are entering 2017 with strong momentum,” said Mezger. “Our strategy is to continue to grow the scale of our business within our current geographic footprint, increase our operating profits, and generate cash internally to both support our future growth and improve our leverage ratio. We believe we are well positioned to capitalize on the continuing increase in demand from first-time homebuyers accompanying current positive economic and demographic trends in many of our served markets.”
KB Home shares rose $0.50 (+3.01%) to $17.10 in after-hours trading Wednesday. Prior to today’s report, KBH had gained 5% year-to-date, versus a 1.60% rise in the benchmark S&P 500 index during the same period.