KB Home shares spike after earnings beat (KBH)
KB Home
KB Home reported first-quarter profits that topped expectations on Wednesday.
The company posted adjusted earnings-per-share (EPS) of $0.14, on revenues of $675.7 million.
Analysts had expected the homebuilder to earn $0.11 in adjusted earnings-per-share and revenues of $637.3 million, according to Bloomberg.
KB Home shares rose as much as 6% in after hours trading.
Net order value rose 9% to $825 million. Orders were expected to be up 3.9% during the quarter, according to the average of four estimates.
"We ended the quarter with a healthy backlog and continued positive momentum in our core homebuilding business, reinforcing our favorable outlook for the full year," said KB Home CEO Jeffrey Mezger in the earnings statement.
The housing market is going through a supply shortage that, coupled with rising demand, is driving up prices.
This has benefited companies like Home Depot, which reported a strong fourth quarter with better-than-expected sales.
This has slowed down the pace of new and existing home sales in recent months. KB Home focuses on first-time home buyers.
Here's a chart showing the jump in shares after-hours:
KB Home
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