Shares of KB Home (KBH) are down 5% after the builder issued forward guidance that fell short of Wall Street’s expectations.
Los Angeles-based KB Homes reported earnings per share (EPS) of $2.04 U.S., which fell slightly short of the $2.06 U.S. consensus expectation of analysts.
Revenue during the quarter totaled $1.75 billion U.S., which was a little above expectations of $1.73 billion U.S.
KB Home said that it delivered 3,631 homes during the quarter, up 8% from a year earlier, while the average selling price rose 3% to $480,900 U.S.
However, the company's forward guidance disappointed analysts and investors.
KB Home said it expects full-year housing revenues of $6.85 billion U.S. to $6.95 billion U.S., which was below analyst projections of $7.01 billion U.S.
The homebuilder also expects its operating income margin to be between 11.1% and 11.2%, lower than the 11.5% analysts had penciled in for the company.
KB Home's also reported that its backlog of homes under contract declined to 5,724 units valued at $2.92 billion U.S. in the year’s second quarter.
That’s down from 7,008 homes worth $3.40 billion U.S. a year ago.
Prior to today (Sept. 25), the stock of KB Homes had risen 87% over the last 12 months and was trading at $87.43 U.S. per share.
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