KB Home Post Narrow Q1 Profit; Revenue Up 59% (KBH)

Before the opening bell on Thursday, home builder KB Home (KBH) reported a narrower than expected loss in the first quarter, helped by a 59% increase in revenue. Both figures were able to beat Wall Street estimates.

The Los Angeles-based company posted a first quarter loss of $12.5 million, or 16 cents per share, significantly narrower than the loss of $45.8 million, or 59 cents per share, posted in the same quarter a year ago. According to analysts polled by Thomson Reuters, the company was expected to see a loss of 22 cents per share in the quarter.

Revenues for the quarter were up 59% to $405.2 million, up from $254.6 million in the same period a year earlier. Analysts were expecting KBH to see revenues of $359.9 million in the quarter.

The higher revenues were driven by a 29% increase in the number of homes delivered and a 24% higher average sale price of $271,300. Net orders also increased, up 40% from the previous year.

Looking ahead, CEO Jeffery Mezger said, “Based on the strategic steps we have taken, our improved performance over the past year and the accelerating momentum we are seeing in our business, we are confident that we will achieve our profitability goal for 2013.”

KB Home shares were up a fraction during Thursday morning trading. The stock is up +92.13% over the past year.

The Bottom Line
Shares of KB Home (KBH) have a dividend yield of 0.45% based on Thursday’s intraday trading price of $22.08 and the company’s annualized dividend payout of 10 cents per share.

KB Home (KBH) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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