KB Home’s (KBH) fourth-quarter profit nearly quadrupled amid higher selling prices, but the home builder missed expectations by a wide margin.
Shares of KB Home slipped 4% to $16.84 in late morning trading. The stock was up about 11% on the year through Wednesday’s close.
The company said Thursday its profit was $28.1 million, or 31 cents a share, well above the year-ago period’s $7.7 million, or 10 cents a share. The latest period included an income-tax expense of $200,000, compared to a $5.3 million benefit last year.
Revenue jumped 7% to $618.5 million, as average selling prices increased 11%.
Analysts were looking for per-share earnings of 45 cents and revenue of $662 million.
The Los Angeles-based company saw double-digit revenue growth in its Southwest, Central and Southeast regions, partially offset by a drop in West Coast revenue.
The West Coast also led a decline in home deliveries, which fell 4% overall to 2,038 homes. Net orders of 1,556 homes in the fourth quarter were roughly level year-over-year.
Home builders have benefited from increased activity in the housing market, fueled in part by low interest rates. An uptick in prices has also given a boost to their top lines.
Lennar (LEN) reported on Wednesday a 32% surge in its fourth-quarter earnings to beat estimates. Earlier this month, luxury home builder Toll Brothers (TOL) said its adjusted income improved amid stronger revenue and home deliveries.