KB Home (NYSE: KBH) reported its fiscal second-quarter financial results after the markets closed on Tuesday. The company said that it had $0.17 earnings per share (EPS) on $811 million in revenue. Consensus estimates called for $0.16 in EPS on revenue of $753.1 million. In the same period of last year, the homebuilder posted EPS of $0.10 and $622.97 million in revenue.
During this period, deliveries grew 30% to 2,329 homes, reflecting double-digit increases in all four of the company’s regions. The average selling price also increased 2% to $346,700.
Ending backlog value grew 14% to $1.83 billion, reflecting increases in all regions. Homes in backlog rose 10% to 5,205.
On the books, KB Home cash and cash equivalents totaled $274.85 million at the end of the quarter, versus $559.04 million at the end of the previous fiscal year.
Jeffrey Mezger, president and CEO, commented:
We delivered a strong second quarter performance. We generated considerable increases in deliveries and revenues, and posted a substantial improvement in earnings, despite charges related to our strategic decision to transition out of the Metro Washington, D.C. area. Our second quarter results reflect the success of our targeted positioning in attractive growth markets and the distinctive home-buying experience we offer to consumers.
He continued:
We are encouraged by the continued improvement in housing market conditions across the country and by the recent increase in participation from first-time homebuyers, historically our primary customer segment. We believe we are particularly well-positioned to leverage our strength in serving the demand from this demographic with dynamic product offerings. With favorable market trends and our financial and operational progress in the first half of the year, we have positive momentum in our business heading into the remainder of 2016.
Shares of KB closed Tuesday up 0.4% at $14.54, with a consensus analyst price target of $14.75 and a 52-week trading range of $9.04 to $17.42. Following the release of the earnings report, the stock was up 1.4% at $14.75 in early indications Wednesday.
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