KB Home (NYSE:KBH) reported stronger-than-expected earnings for its first quarter on Thursday.
Revenues increased 33% to $1.08 billion, the highest revenues for any first quarter since 2007. The Company’s income tax expense was $9.1 million, compared to $4.5 million. For each period, the effective tax rate, inclusive of excess tax benefits from stock-based compensation and other favorable impacts, was approximately 13%.
Net income increased 99% to $59.7 million, and diluted earnings per share increased 103% to $.63.
CEO Jeffrey Mezger said, “Our principal focus today is the concern for the health and welfare of our employees, customers and business partners, and their families, in light of the wide-ranging efforts to contain COVID-19 and the impact it will have on the global economy.
"While our performance in the first quarter was strong, with underlying market conditions that were robust, these results preceded the COVID-19 pandemic declaration, and we are now taking actions to adjust our business in this period of uncertainty."
In light of the uncertainty surrounding the spread of COVID-19 and the unprecedented public health and governmental efforts to contain it, management has withdrawn guidance for its 2020 fiscal year.
"Through its experienced leadership team," said Thursday’s press release, "and supported by a solid balance sheet and significant liquidity, the Company continues to engage with customers who maintain a strong desire for homeownership, deliver homes and generate revenues, while working closely with its business partners and monitoring cash outflows to position the Company to navigate through this evolving operating environment."
KBH shares moved downward $1.08, or 5.7%, to open Friday at $17.84
