KB Home (KBH) shares climbed Tuesday, a day after the home builder reported better-than-expected results as deliveries jumped.
The company posted fourth-quarter earnings per share (EPS) of $2.52, with revenue up 19% from a year ago to $2 billion. Both figures exceeded analysts' forecasts compiled by Visible Alpha.
Homes delivered increased 17% to 3,978, and the average selling price rose 3% to $501,000. Homebuilding operating income grew 27% to $229.1 million, and homebuilding operating margin added 60 basis points (bps) to 11.5%.
CEO Jeffrey Mezger said the boost in deliveries was driven by faster construction times. He noted that new orders climbed by about 40% on continuing demand and improved market conditions, “despite ongoing mortgage interest rate headwinds.”
Mezger added that the company spent more than $2.8 billion in 2024 on land purchases and development, and “we plan to increase our investment again in 2025.”
KB Home shares were up over 3% at $66.16 in intraday trading Tuesday and have added about 10% over the past 12 months.
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