KB Home (NYSE: KBH) reported stronger-than-expected earnings for its third quarter on Thursday. On Friday, the company’s stock leaped.
The Los Angeles-based KB Home reported that its revenues were up 25% to $1.1 Billion. Net Income increased 28% to $50.2 Million. What’s more, the corporation’s homebuilding Operating Income Margin Improved 100 Basis Points. KB also declared that its net order value grew 15% to $1.1 Billion.
Said KB Home CEO Jeffrey Mezger, “we continued to make considerable progress on our three-year returns-focused growth plan with outstanding results in our 2017 third quarter.
“We posted double-digit increases in revenues and earnings, and generated measurable improvement across our key financial metrics. Significantly, we increased our housing gross profit margin on a year-over-year basis, excluding inventory-related charges, and we expect to sustain this favorable comparison on a quarterly basis going into 2018. In addition, with the expansion in our gross margin and a record-low third quarter SG&A ratio, we improved our operating income margin by 100 basis points, extending the upward trend in this important profitability measure.”
KB Home is one of the largest homebuilders in the United States, with nearly 600,000 homes delivered since our founding in 1957. The company operates in 36 markets in seven states, primarily serving first-time and first move-up homebuyers, as well as active adults.
KB stock perked late Friday, gaining $2.26, or 10.2%, achieving a new 52-week high to $24.48
