KB Home Shares Up 3.5% As Profit And Sales Top Estimates

KB Home shares surged 3.5% in premarket trade Friday, after the home builder beat profit and revenue estimates for the second quarter. The company said it had net income of $9.6 million, or 10 cents a share, in the quarter, down from $26.6 million, or 27 cents a share, in the year-earlier period. Revenue climbed to $622.9 million from $565.0 million. The FactSet consensus was for EPS of 8 cents and revenue of $618 million. "With the positive momentum we have generated across our business, we ended the second quarter with significantly higher backlog levels in each of our four regions relative to a year ago, providing excellent visibility on our deliveries and revenues for the remainder of the year," Chief Executive Jeffrey Mezger said in a statement. The company is expecting "measurable" growth in revenue and deliveries in the second half, he said. Shares are down almost 10% in the year so far, while the S&P 500 has gained 3%.