BUSINESS

KB Home profit slides but tops forecasts

Shares of KB Home jumped Friday after the custom home builder reported better-than-expected results for the second-quarter, delivered more homes for a higher average selling price and said its backlog of orders spiked.

The Los Angeles-based home builder said its potential future housing revenues in backlog grew 57% to $1.61 billion compared to last year, reflecting "substantial" increases in each of the company's regions.

The company also said the number of homes it delivered in the quarter climbed 2% to 1,787, and the average selling price advanced 6% to $338,500.

Overall, KB Home earned $9.6 million, or 10 cents per share, in the three months ended May 31. That was down 64% from$26.6 million, or 27 cents per share, a year ago. The decline reflected rises in its income tax and several other expenses.

The company said its homebuilding costs and expenses climbed 14% to $602.9 million in the quarter.

The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share.

Total revenue advanced 10% to about $623 million. That missed the average forecast for $655 million.

Shares of KB Home jumped 7.5%, or $1.12, to $16.08 in midday trading, as broader indexes slipped.

That stock price had fallen almost 10% since the beginning of the year, as of Thursday's close. The stock has decreased 14% in the last 12 months.

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