KB Home Q3 Profit Rises, But EPS Down - Quick Facts

(RTTNews) - KB Home (KBH) reported that its net income for the third-quarter of 2014 totaled $28.4 million or $0.28 per share, compared to $27.3 million, or $0.30 per share, in the third quarter of 2013, reflecting the Company's revenue growth, expanded housing gross profit margin and lower interest expense, partly offset by a higher selling, general and administrative expense ratio and the impairment charge for the planned future land sale. Analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues was $589.2 million up 7% from $549.0 million in the third quarter of 2013, driven by growth in the Company's housing revenues attributable to higher average selling prices. Wall Street expected revenues of $646.76 million.

The company delivered 1,793 homes in the third quarter, compared to 1,825 homes delivered in the year-earlier quarter. Deliveries in the quarter were tempered by delays in construction schedules and customer mortgage loan closings that resulted in some deliveries being deferred to the fourth quarter.

"We expect to continue leveraging our solid backlog, strategic land investments, rising community count, and organizational efficiencies to drive sustained earnings growth and long-term value creation for our stockholders. Our progress through the first three quarters of 2014 underscores the underlying strength of the momentum we have generated in our business to accomplish our financial and operational goals for this year and beyond," said Jeffrey Mezger, president and chief executive officer.