LOS ANGELES - KB Home (NYSE:KBH) shares jumped 7.97% in after-hours trading on Monday after the homebuilder reported better-than-expected fourth quarter results and provided an upbeat outlook for 2025.
The company posted earnings of $2.52 per share for the quarter ended November 30, surpassing analyst estimates of $2.47. Revenue came in at $2 billion, edging past the consensus forecast of $1.99 billion and marking a 19% increase YoY.
KB Home delivered 3,978 homes in Q4, up 17% from the prior year period. The average selling price rose 3% to $501,000.
"We had a strong finish to 2024, with significant year-over-year growth in our fourth-quarter revenues and diluted earnings per share," said Jeffrey Mezger, Chairman and CEO. "Our higher revenues reflected an increase in deliveries, which were driven by faster build times."
Looking ahead, KB Home expects full-year 2025 housing revenues between $7 billion and $7.5 billion, with an average selling price ranging from $488,000 to $498,000. The company anticipates a homebuilding operating income margin of approximately 10.7%.
Mezger added, "In 2025, we will remain focused on expanding our scale, profitability and returns. We believe we are poised for growth having invested over $2.8 billion in land acquisition and development in 2024, and we plan to increase our investment again in 2025."
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