LOS ANGELES (AP) — Shares of KB Home jumped Friday after the custom home builder reported better-than-expected results for the second-quarter, delivered more homes for a higher average selling price and said its backlog of orders spiked.
Its shares jumped more than 7 percent in morning trading.
The Los Angeles-based home builder said its potential future housing revenues in backlog grew 57 percent to $1.61 billion compared to last year, reflecting “substantial” increases in each of the company’s regions.
The company also said the number of homes it delivered in the quarter climbed 2 percent to 1,787, and the average selling price advanced 6 percent to $338,500.
Overall, KB Home earned $9.6 million, or 10 cents per share, in the three months ended May 31. That was down 64 percent from$26.6 million, or 27 cents per share, a year ago. The decline reflected rises in its income tax and several other expenses.
The company said its homebuilding costs and expenses climbed 14 percent to $602.9 million in the quarter.
The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share.
Total revenue advanced 10 percent to about $623 million. That missed the average Street forecast for $655 million.
Shares of KB Home jumped 7.5 percent, or $1.12, to $16.08 in midday trading, as broader indexes slipped.