KB Home rallies more than 4% on company’s earnings beat
Shares of KB Home KBH, -0.94% rose more than 4% in the extended session Tuesday after the home builder reported third-quarter per-share earnings well above Wall Street expectations. KB Home said it earned $87.5 million, or 87 cents a share, in the quarter, compared with $50.2 million, or 51 cents a share, in the year-ago period. Revenue rose 7% to $1.2 billion, from $1.1 billion a year ago. Analysts polled by FactSet had expected earnings of 77 cents a share on sales of $1.3 billion. "Our core homebuilding business continued to perform very well, as healthy demand in our served markets and effective execution on our distinctive customer-centric operating model drove revenue expansion, a 190-basis point improvement in operating margin, and a meaningful increase in net income," Chief Executive Jeffrey Mezger said in a statement. KB Home stock ended the regular session down 0.9%.
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