KB Home Sales Climb, Though Profit Is Pressured
January 11 2017 - 5:35PM
Dow Jones News
By Ezequiel Minaya
Home builder KB Home said Wednesday that revenue climbed 21% in
the fourth quarter, though weakness in its financial-services
segment dragged on profit.
For KB Home, backlog -- a gauge of the company's housing starts
-- rose 11% during the quarter from a year earlier. At the same
time, deliveries climbed 19% to 3,060 homes while new orders rose
20%.
Revenue rose 21% to $1.19 billion from $985.8 million a year
ago.
Financial services, however, posted a loss of $700,000, down
from a profit of $4 million a year earlier, weighing on earnings.
Net income slipped to $37.5 million in the quarter from $44
million. On a per-share basis, profit fell to 40 cents from 43
cents.
Results were still narrowly stronger than expected, with
analysts surveyed by Thomson Reuters predicting 39 cents a share on
$1.15 billion in revenue.
Shares of Los Angeles-based KB Home rose 2.7% after hours to
$17.05.
U.S. housing starts slipped 18.7% in November, according to the
Commerce Department, but remained at levels suggesting steady
demand for single-family homes. There is concern, however, that a
climb in mortgage rates in 2017 could cool the sector.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
January 11, 2017 17:20 ET (22:20 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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