Why KB Home Stock Is Sinking After-Hours

KB Home KBH shares are trading lower in Wednesday's after-hours session following the company's third-quarter financial results. Here's what happened.

What To Know: KB Home reported quarterly earnings of $1.80 per share which beat the analyst consensus estimate of $1.43, a 37.06% decrease over earnings of $2.86 per share from the same period last year. The company reported quarterly sales of $1.59 billion which beat the analyst consensus estimate of $1.48 billion, a 13.98% decrease over sales of $1.84 billion the same period last year.

The company also reported that homes delivered decreased 7% to 3,375 and the average selling price was $466,300, compared to $508,700.

KB Home raised the full-year 2023 housing revenues outlook from between $5.80 billion and $6.20 billion to $6.31 billion.

"We are pleased to report strong financial results for our third quarter, which exceeded our guidance ranges, driven in part by achieving higher deliveries, as we further compressed build times," said Jeffrey Mezger, Chairman, President and CEO.

"We generated revenues of approximately $1.6 billion and, together with an operating margin of 11.3%, produced diluted earnings per share of $1.80. While our year-over-year comparisons reflect the record results we achieved in the prior-year quarter, we expect this quarter's solid performance to contribute to a more profitable 2023 fiscal year than we had previously anticipated."

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KBH Price Action: Shares of KBH were down 1.72% at $47.24 in the after-hours session at the time of publication, according to Benzinga Pro.

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