KB Home said Thursday it sold more homes at higher prices in the company’s second quarter, beating Wall Street’s earnings expectations.
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The Los Angeles-based home builder delivered 2,717 homes, an increase of 5% over the same period a year earlier. The average selling price grew 4% to $401,800.
Inventories hit $3.46 billion, up 6% since the end of November.
Home builders have benefited from strong prices in the U.S., driven by a shortage of available homes. Prices across the country rose 6.4% in the 12-month period through April, according to the latest S&P CoreLogic Case-Shiller report. Pending home sales fell for a fifth straight month in May amid limited supplies, based on a report from the National Association of Realtors (NAR). Sales of new single-family homes were up more than expected during the same month.
Homebuilders face headwinds from rising costs and higher mortgage rates, which could slow buying activity.
KB Home’s earnings soared 80% to $57.3 million, or 57 cents a share, in the second quarter. Analysts were looking for 48 cents a share. Revenue improved 10% to $1.1 billion, higher than the consensus estimate of $1.04 billion.
KB Home shares rallied more than 5% in after-hours trading.