KB Home Quarter DisappointsThursday, December 19, 2013
Shares of KB Home fell 6 percent after the homebuilder announced lower-than-expected fourth quarter revenue and earnings per share.
The Los Angeles company reported net income of $28 million (31 cents a share) for the quarter ended Nov. 30, compared with $7.7 million (10 cents) in the same period a year earlier.
Revenue rose 7 percent to more than $618 million, with double-digit growth in KB Home's southwest, central and southeast regions. West Coast business declined. Net orders during the quarter were about even with the year-earlier quarter. Homes delivered fell 4 percent to 2,038, largely from the West Coast.
"The catalyst for this progress has been an ongoing strategic shifting of our operations to higher-performing markets across the country," said Chief Executive Jeffrey Mezger.
But analysts surveyed by Thomson Reuters on average had expected the company to report profit of 45 cents a share on revenue of more than $662 million.
Shares closed down $1.08, or 6 percent, to $16.47 on the New York Stock Exchange.