KB Home (NYSE:KBH) reported stronger-than-expected earnings for its fourth quarter.
Total revenues decreased 4% to $1.35 billion. Deliveries increased slightly to 3,389 homes. Homebuilding operating income totaled $121.9 million, compared to $131.9 million.
Homebuilding operating income margin was 9.1%, down 30 basis points. The company also says that, Net income rose 15% to $96.8 million, and diluted earnings per share increased 14% to $.96.
CEO Jeffrey Mezger said, "Along with a further increase in our scale to $4.55 billion in total revenues, we meaningfully enhanced our profitability, producing an operating income margin within our 2019 target range, and improved our return metrics above their target levels.
"We also took a balanced approach in allocating the substantial cash flow we generated toward supporting our future growth, reducing our debt and returning capital to stockholders through repurchases of our common stock. Through these efforts, we ended the year with a higher community count, a measurably lower leverage ratio and a book value of approximately $24 per share."
The Company had total liquidity of $1.05 billion, including cash and cash equivalents of $574.4 million.
KB Home claims to be one of the largest homebuilders in the United States, with more than 600,000 homes delivered since our founding in 1957. "We operate in 38 markets in eight states, primarily serving first-time and first move-up homebuyers, as well as active adults."
The stock fell in price $1.13, or 5.2%, to $20.84
