Boston, MA 09/25/2014 (wallstreetpr) – KB Home (NYSE:KBH), the U.S. biggest and most recognized residential homes’ builder, reported the Q3, 2014 earnings yesterday.
Highlights And Achievements
A Business Wire article highlighted the company’s results for the three months ended Aug 31, 2014. Total revenues for the reported quarter rose 7%, to as much as $589.2 million, from Q3, 2013 earnings of $549 million. The high housing revenue is attributable to the increased average selling prices. Net income reported came to a total of $28.4 million, up from last year’s $27.3 million. With this quarter, this is the company’s 12th straight quarter when it demonstrated huge revenue growth in the year-over-year quarters.
KB Home (NYSE:KBH) delivered as many as 1,793 homes this year, more than last year’s 1,825 homes. However, there were many delays in construction schedules this year. Because of this, and also because of the closing of the customer mortgage loans, some delivered have been shifted to the next quarter, the company reported.
Average selling price surged 9%, to $327,000, mainly because of the preferred home locations. In the Central region, there was a 9% increase, while 21% in the West Coast area, as compared to previous year’s reports. Operating income, on the other hand, summed to $33.9 million, low from last year’s $36 million. Housing profit margin increased 18.8%, which marks the company’s highest Q3 margin since 2006.
Nine-Month Period Comparison
For the nine-month period, ended Aug 31, revenues surged 9%, to $1.6 billion but home deliveries decreased to 4,986, from 5,107 last year. The overall average selling price totaled $318,100, marking a surge of 10% as compared to the period between Jan and Sept of 2013. Operating income increased to $85.9 million, almost double as compared to corresponding period’s $45.1 million. Net income also showed a significant increment to $65.5 million, as opposed to the low $11.8 million of the similar last year term.
