Photo: Joe Raedle/Getty Images
KB Homes reported a better-than-expected second quarter loss of $0.31 per share, as new orders surged 18 per cent during the period. Revenue also improved during the three months ending May 31, up 11 per cent to $302.9 million.
Economists polled by Bloomberg had forecast the home builder to report a loss of $0.35 per share, on sales of $294 million.
KB’s earnings announcement underscored pressures on the housing market, which many economists believe has hit a bottom. Prices and home sales both increased compared to year-ago levels, however there were sharply differing trends recorded across the country.
The company said it delivered 1,290 homes, as sales improved in the Central and Southeast U.S., while the West Coast and Southwest logged declines.
Home prices improved nine per cent on average, to $233,000.
“In navigating through a mixed environment of an improving, but uneven recovery in housing markets and softening economic and employment trends, we will remain focused on executing our strategic initiatives, which we believe will generate both near-term improvement in our financial and operating results and longer-term growth and profitability,” Chief Executive Jeffrey Mezger said in a statement.
Shares are trading more than 10 per cent higher in pre-market trade.