Higher home prices are boosting profits at
The Los Angeles-based builder on Friday reported profits of $26.6 million in the second quarter, or 27 cents a share, swinging from a loss in the same period last year and beating analysts' expectations.
While KB sold fewer homes in the three months ending May 31 than it did in the same period of 2013, those houses sold, on average, for 10% more, boosting revenue by 8% to $565 million. KB credited the improving housing market generally, and the company's "continued focus on positioning its new home communities in land-constrained locations that typically feature higher household income and strong demand."
The company said it continues to shop for new sites to build on, and hopes to "measurably expand our community count into 2015."
"Increasing the number of new home communities we have open for sales remains a top priority for us," said Chief Executive Officer Jeffrey Metzger in a statement. "We acquired several attractive large land positions and substantially advanced our land development in the second quarter."
The results beat analysts' expectations and KB stock was up as markets opened Friday.