The signals are multiplying that a recovery in home construction is taking place. Earlier this week the S&P Case-Shiller housing price index showed a gain for the first time in seven months. The US Census Bureau reported new home sales at a two-year high and new building permits also rose sharply. This morning homebuilder KB Home (NYSE: KBH) reported second quarter results that keep the ball rolling.
KB Home reported an EPS loss of $0.31 compared with a consensus estimate for a loss of $0.34. Revenue totaled $302.9 million, higher than the estimate of $301.3 million. The only downside is that KB’s net loss of $24.1 million included a one-time tax benefit of $4.5 million. Backing that out pulls the company’s EPS loss to $0.37. Lennar Corp. (NYSE: LEN), which reported earnings earlier this week, posted EPS of $0.21, excluding a tax benefit of $1.85/share.
Earnings aside for the moment, gross margins, excluding certain items, at KB Home improved from 14.9% in the same period a year ago to 20.3% this year. The average selling price rose 9% and deliveries of new homes rose 2%.
That’s all good news. As with Lennar, KB Home’s backlog also rose by 22% and the value of the backlog rose by 38% year-over-year. Orders are also up 3% for the quarter.
Shares of KB Home are up more than 10.5% in the pre-market at $9.62 in a 52-week range of $5.02-$13.12.
Other homebuilders’ stocks are getting a boost too: Lennar is up more than 2.7%, PulteGroup Inc. (NYSE: PHM) is up 4.2%, Hovnanian Enterprises Inc. (NYSE: HOV) is up nearly 5%, Toll Brothers Inc. (NYSE: TOL) is up 1.6%, and D.R. Horton Inc. (NYSE: DHI) is up 3.5%.
Paul Ausick
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.