KB Home Shares Climb On Q2 Earnings Beat, Strong Guidance

KB Home KBH shares are trading higher in Wednesday's after-hours session on the heels of the company's second-quarter report. Here's a rundown of the results and a look at what's driving the action.

What Happened: KB Home said second-quarter revenue increased 3% year-over-year to $1.77 billion, which beat the consensus estimate of $1.42 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.94 per share, which beat analyst estimates of $1.34 per share. 

Homes delivered increased 6% year-over-year to 3,666. Average selling price decreased 3% year-over-year to $479,500. 

The company said net order value totaled $1.9 billion, down 11% year-over-year on lower average selling prices. Gross margin for housing came in at 21.1%. 

KB Home ended the quarter with $557 million in cash and equivalents and total liquidity of $1.64 billion.

"The improvement in demand we started to see in February was sustained throughout our second quarter, as we achieved monthly sequential increases in our net orders, resulting in an overall absorption pace of 5.2 net orders per month, per community," said Jeffrey Mezger, chairman, president and CEO of KB Home.

"Operationally, our divisions are executing well, driving reductions in both build times and direct construction costs as well as opening new communities."

KB Home expects full-year housing revenues to be in a range of $5.8 billion to $6.2 billion versus estimates of $5.5 billion. 

The company said it will provide third-quarter guidance on its conference call, which is set to kick off at 5 p.m. ET.

Shares appear to be reacting positively to better-than-expected results, strong guidance and positive commentary on net orders and cost management.

See Also: US Builders Are The Most Confident They've Been About New Single-Family Homes In 11 Months

KBH Price Action: KB Home shares were up 1.08% after hours at $52.59, according to Benzinga Pro.

Photo: Paul Brennan from Pixabay.