×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: KB Home Shares Jump as Profit Tops Forecasts

KB Home Shares Jump as Profit Tops Forecasts

Friday, 07 January 2011 11:02 AM EST

KB Home posted a quarterly profit without the benefit of tax gains for the first time in almost four years, boosted by higher margins and cost cutting, sending the builder's shares up 5 percent.

Selling, general and administrative expenses fell by more than a third, and earnings easily topped Wall Street expectations.

"The company's better-than-expected gross margin and SG&A represent solid positive surprises and should drive the stock higher today," J.P. Morgan analyst Michael Rehaut wrote in a note to clients.

Net income was $17.4 million, or 23 cents per share, for the fourth quarter, ended Nov. 30. Analysts' average forecast was 17 cents a share, according to Thomson Reuters I/B/E/S.

A year earlier, KB earned $100.7 million, or $1.31 per share, thanks to a change in tax legislation.

Housing gross margins rose to 19.1 percent from 6.8 percent a year earlier, while selling, general and administrative expenses fell by 35 percent to 55.7 million.

Orders were down 25 percent to 1,085, signaling a dip in revenue from home closings in the next few quarters, but that number is roughly in-line with builders' average 26 percent order decline in the third quarter, Rehaut said.

KB shares were up 73 cents to $15.06 in early trading on the New York Stock Exchange.

© 2022 Thomson/Reuters. All rights reserved.


InvestingAnalysis
KB Home posted a quarterly profit without the benefit of tax gains for the first time in almost four years, boosted by higher margins and cost cutting, sending the builder's shares up 5 percent. Selling, general and administrative expenses fell by more than a third, and...
KB Home Shares Jump as Profit Tops Forecasts
211
2011-02-07
Friday, 07 January 2011 11:02 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved