Los Angeles Based KB Home’s Shares Jump with Higher Than Expected First Quarter Profits
On Wednesday, KB Home, the Los Angeles, California based custom home builder's shares rose as the company reported better-than-expected first quarter earnings with a boost in revenue from homebuilding.
The company said its net income was $13.1 million or 14 cents a share. A strong homebuilding business helped in pushing the company's revenue by seventeen percent to $678.4 million for the first quarter.
The results surpassed the analysts' expectations. KB Home's shares increased 84 cents or 6.4 percent, to $13.94 during the after-hours trading.
On Wednesday, the Commerce Department said that there was a two percent increase in new-home sales in February compared to January, touching an annual rate of 512,000. This is another indicator for the U.S. economic expansion which shows stability in spite of troubles in other global markets.
KB Home earned $13.1 million in the quarter or 14 cents per share in comparison to last year's $7.8 million or 8 cents per share. Revenue climbed 17 percent to $678.4 million.
However, certain indicators pointed at slower gains in the housing market with existing home sales dropping 7.1 percent in February as compared to January. However, the numbers were 2.2 percent up compared to last year.
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