KB Home Stock Gains as Deliveries Surge, Driving Profit Above Estimates | Global News Avenue

Knowledge Base Home Page (KB) shares rose on Tuesday after the homebuilder reported better-than-expected results and a surge in deliveries.

The company reported fourth-quarter earnings per share (EPS) of $2.52, with revenue up 19% from a year earlier to $2 billion. Both figures beat analyst forecasts compiled by Visible Alpha.

Home deliveries increased 17% to 3,978 units, and the average sales price increased 3% to $501,000. residential building operating income Up 27% to $229.1 million, residential construction operating profit margin Added 60 basis points (bps) to 11.5%.

CEO Jeffrey Mezger said the increase in deliveries was due to faster construction times. He noted that new orders were up about 40% “despite continued headwinds with mortgage rates,” driven by continued demand growth and improving market conditions.

Metzger added that the company will spend more than $2.8 billion on land purchases and development in 2024, and “we plan to increase investment again in 2025.”

KB Home shares rose more than 3% to $66.16 in intraday trading on Tuesday, having risen about 10% in the past 12 months.