KB Home shares spike after earnings beat

KB Home reported first-quarter profits that topped expectations on Wednesday.

The company posted adjusted earnings-per-share (EPS) of $0.14, on revenues of $675.7 million.

Analysts had expected the homebuilder to earn $0.11 in adjusted earnings-per-share and revenues of $637.3 million, according to Bloomberg.

KB Home shares rose as much as 4% in after hours trading.

Net order value rose 9% to $825 million. Orders were expected to be up 3.9% during the quarter, according to the average of four estimates.

The housing market is going through a supply shortage that, coupled with rising demand, is driving up prices.

This has benefited companies like Home Depot, which reported a strong fourth quarter with better-than-expected sales.

This has slowed down the pace of new and existing home sales in recent months. KB Home focuses on first-time home buyers.

More to come …

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