KB Home's revenue soared in the fourth quarter, as higher home prices helped the Los Angeles builder beat sales expectations on Wall Street.
The firm, one of the nation’s largest home builders, said Tuesday that revenue hit $796 million in the quarter ended Nov. 30, a 29% gain from the same period a year earlier.
The figures beat analyst revenue expectations of $775 million, according to FactSet.
KB said it sold more homes at higher prices, helping boost revenue. Average sale prices rose in all the company’s regions, with a 17% gain on the West Coast, KB said.
“The housing market and the broader economy, had a measurable impact on our financial position,” Chief Executive Jeffrey Mezger said in a statement. “We are energized by our achievements in 2014 and the opportunities ahead.”
Net income was $852.8 million, or $8.36 per share. However, that included a hefty income tax benefit of $824.2 million, the company said.
A year earlier, the company earned $28.1 million, or 31 cents a share.
KB shares gained as much as 4% on Wall Street, but by late morning they had fallen back, down 10 cents, or 0.6%, to $16.47.
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