KB Home Reports Mixed Q3 Earnings As Supply Chain Snags Delay Deliveries

KB Home KBH reported third-quarter FY22 sales growth of 26% year-on-year, to $1.84 billion, missing the consensus of $1.87 billion.
Homes delivered in the quarter increased 6% to 3,615 and the average selling price rose 19% to $508,700.
The housing gross profit margin expanded 520 basis points to 26.7%.
The homebuilding operating margin expanded 610 basis points to 17.7%, and the homebuilding operating income for the quarter grew 91% to $325.1 million.
The company held $195.4 million in cash and equivalents as of August 31, 2022.
EPS of $2.86 beat the analyst consensus of $2.66.
"Although we experienced a shortfall in deliveries relative to our expectation due to extended build times and ongoing supply chain constraints, which will also impact our 2022 fourth quarter, our results demonstrate our larger scale, excellent portfolio of communities, and a healthy balance sheet," said Chairman and CEO Jeffrey Mezger.
Outlook: KB Homes sees Q4 housing revenue of $1.95 billion - $2.05 billion.
Average selling price is expected to be approximately $503,000.
Price Action: KBH shares are trading lower by 0.47% at $27.80 in premarket on the last check Thursday.
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