KB Home records $565 million 2Q2014 revenue
Beats analyst expectations
Homebuilder KB Home (KBH) recorded a second-quarter total revenue of $565 million, increasing 8% from $524.4 million from the first quarter of 2013. The company’s earnings per share of $0.27 beat Sterne Agee analyst estimates of $0.23 due to lower interest expenses and lower income tax provisions than expected.
The company delivered 1,751 homes in the current quarter, slightly down from 1,797 homes for the same period a year ago.
"Increasing the number of new home communities we have open for sales remains a top priority for us," Jeffrey Mezger, president and CEO, said.
"We acquired several attractive large land positions and substantially advanced our land development in the second quarter to reinforce the upward trajectory of our business. We expect to measurably expand our community count into 2015 with the significant investments we are making in our land pipeline,” Mezger added.
In addition, the overall average selling price of a home came in at $319,700, rising $29,300, or 10%, from the second quarter of 2013, marking the seventh consecutive quarter of double-digit year-over-year percentage growth.
Operating income jumped to $34.3 million, up $25.6 million from $8.7 million in the year-earlier quarter.
"We have produced year-over-year revenue increases for 11 straight quarters and operating income improvement for ten consecutive quarters. With the momentum we have generated through the first half of the year and our robust backlog, we believe we are on track to meet our fiscal 2014 goals," Mezger said.