KB Home Stock Is Climbing After Hours As Homebuilder Sees Spring 'Increase In Demand'

KB Home KBH shares are trading higher in extended trading Wednesday after the homebuilder reported financial results that topped analyst expectations and provided an upbeat outlook. 

What Happened: KB Home reported fiscal first-quarter revenue of $1.38 billion, which beat consensus estimates of $1.31 billion, per Benzinga Pro. The company's top-line results were "essentially the same" year-over-year. 

KB Home reported quarterly earnings per share of $1.45, which beat average estimates of $1.14. 

Homes delivered decreased 3% year-over-year to 2,788, while average selling prices increased 2% to $494,500. KB Home ended the quarter with a backlog of 7,016 units worth $3.31 billion, down from a backlog of 11,886 units worth $5.71 billion on a year-over-year basis.

Net orders fell 49% year-over-year to 2,142. Gross orders were down 29% year-over-year, but increased 55% sequentially. 

"As we entered the Spring selling season during the quarter, we began to see an increase in demand. This reflected in part the targeted sales strategies we deployed, together with a stabilizing mortgage interest rate environment. As a result, we achieved a sequential improvement in our net orders in both January and February, and net orders have remained strong in the early weeks of March," said Jeffrey Mezger, chairman, president and CEO of KB Home.

KB Home announced a new $500 million buyback. The company sees full-year 2023 revenues between $5.2 billion and $5.9 billion versus estimates of $5.31 billion. KB Home also plans to provide second-quarter guidance on its conference call, which kicks off at 5 p.m. ET.

See Also: Fed's Rate Hike Dilemma, Housing Market And Other Key Data: Benzinga's Weekly Main Street Monitor

KBH Price Action: KB Home shares are up 2.67% at $37.85 at the time of writing, according to Benzinga Pro.

Photo: Paul Brennan from Pixabay.