KB Home (KBH) – Get Report shares surged in after-hour trading on Thursday after the home builder posted stronger than expected first quarter earnings.
For the quarter ending February 29, KB net profit was $ 59.7 million, or 63 cents per share, compared to $ 30 million, or 31 cents, in the prior year period. Analysts interviewed by FactSet forecast earnings per share of 45 cents in the last quarter.
KB posted revenues of $ 1.08 billion, up 33% from the prior year quarter and outperforming analysts’ forecasts for $ 957.7 million. It was the company’s strongest first quarter in revenue since 2007.
Understandably, CEO Jeffrey Mezger’s focus does not focus on quarterly earnings.
“Our main focus today is concern for the health and well-being of our employees, customers and business partners and their families, in light of the efforts made to contain Covid-19 and the impact it will have on the global economy,” He said in a statement.
“While our first quarter performance was strong, with underlying market conditions being solid, these results preceded the Covid-19 pandemic and we are now taking action to adjust our business in this time of uncertainty.”
He praised the company’s “strong balance” and over $ 1.2 billion in cash. “With our made-to-order model, we are flexible in aligning our business with demand and building our sales pace, mitigating inventory risk,” said Mezger.
“As we continue to close homes and generate revenue, we are also taking steps to limit the acquisition and development of the territory until circumstances no longer stabilize.”
KB shares at the last check were $ 20.67, an increase of 8.3%. They ended the regular session on Thursday down 2% to $ 19.08.