Shares of KB Home rose nearly 6 percent on Wednesday after the home builder said it moved to a profit in its fiscal first quarter and new home orders had increased.
The Los Angeles company reported net income of $10.6 million (12 cents a share) for the quarter ended Feb. 28, compared with a loss of $12.5 million (-16 cents) in the same period a year earlier. The results included a gain of $3.2 million on the sale of the KB Home’s interest in joint venture in Maryland.
Revenue rose 11 percent to nearly $451 million.
Analysts surveyed by Thomson Reuters on averaged expected the company to report earnings of 8 cents a share on revenue of $435 million.
The company delivered 1,442 homes during the quarter, compared with 1,485 homes a year earlier. New home orders rose 6 percent to 1,765 units.
"We are entering the spring selling season positioned with more communities open in attractive locations across the country,” Chief Executive Jeffrey Mezger said in a statement. We are confident that our balanced approach to sales price and pace, combined with our focus on both top-line growth and profitability, will produce strong results in the coming quarters.”
Shares closed up $1.04, or 5.9 percent, to $18.72 on the New York Stock Exchange.