By Davit Kirakosyan
KB Home (NYSE:KBH) shares rose more than 3% after-hours following the company’s reported Q1 results, with EPS of $1.45 coming in better than the consensus estimate of $1.15.
Revenue of $1.38 billion (roughly flat year-over-year) also beat the consensus estimate of $1.31B. Homes delivered decreased 3% year-over-year to 2,788, with an average selling price of $494,500 (up 2% year-over-year).
Ending backlog units totaled 7,016 with a value of $3.3B, compared to 11,886 with a value of $5.71B in the year-ago period. Net orders of 2,142 and net order value of $1.00B decreased 49% and 53%, respectively, as the combination of higher mortgage interest rates, elevated inflation, and other macroeconomic and geopolitical concerns continued to temper demand.
“We produced solid financial results in the first quarter, with diluted earnings per share that were in line with the prior-year quarter, despite significantly more challenging housing market conditions. Our revenues were at the high-end of our guidance range and we outperformed both our operating and gross margin expectations,” said Jeffrey Mezger, Chairman, President and CEO.
The company provided its full 2023-year outlook, expecting housing revenues in the range of $5.20-$5.90B, with an average selling price of $480,000-$490,000.
Furthermore, the company authorized the repurchase of up to $500 million of its outstanding common stock, replacing a prior authorization, which had $75M remaining.