KB Home (NYSE: KBH) reported fourth-quarter and full-year 2015 results before markets opened Thursday morning. The homebuilder reported diluted earnings per share (EPS) of $0.43 on revenues of $985.8 million. In the same period a year ago, KB Home reported adjusted EPS of $8.36 on revenue of $796 million. Fourth-quarter results compare to consensus analysts’ estimates for EPS of $0.50 and $1.07 billion in revenue.
For the full year, KB Home reported revenues of $3.03 billion and EPS of $0.85, compared with revenues of $2.4 billion and EPS of $9.25 for fiscal year 2014. The consensus estimates called for revenues of $3.11 billion and EPS of $0.90.
Fourth-quarter 2014 net income of $852.8 million included an income tax benefit totaling $824.2 million, which reflected a deferred tax asset valuation allowance reversal of $825.2 million. Excluding the tax benefit net income totaled $28.6 million. On an annual basis, 2014 net income excluding the benefit totaled $94.95 million.
In the fourth quarter of 2015, net income totaled $44 million. Full-year net income totaled $84.6 million. Land sales revenues fell from $9.3 million in the year-ago quarter to $2.3 million
The company offered no guidance in its press release.
KB Home said that it delivered 2,580 homes in the fourth quarter, an increase of 16% compared with 2,229 homes delivered in the same period a year ago. The average selling price increased by 8%, from $351,500 a year ago to $379,800. Average selling prices were higher in all the company’s regions, and the increase was largest in the Central region.
The company’s CEO said:
While inclement weather and trade shortages in certain markets tempered our fourth-quarter deliveries and revenues, we have a positive rhythm in our business and substantial momentum as we enter 2016. With our higher backlog giving us strong visibility for potential future deliveries and revenues, and housing market conditions expected to remain generally healthy, we believe we are well-positioned strategically, financially and operationally for further success in 2016.
Gross profit margins came in at 17.2%, up from 16.2% in the year-ago quarter. SG&A fell from 11.9% to 10.0% in the quarter and interest expense dropped from $4.5 million to $4 million. Fourth-quarter housing gross profit margin included approximately 50 basis points of inventory impairment and land option contract abandonment charges.
Shares were inactive in premarket trading Thursday, having closed at $11.79 on Wednesday, in a 52-week range of $11.53 to $17.42. The low was posted Wednesday. Thomson Reuters had a consensus analyst price target of around $16.00 before the results were announced.
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