NEW YORK - KB Home (NYSE:KBH) reported third quarter earnings that missed analyst expectations, sending shares down 5% in after-hours trading on Wednesday as the homebuilder provided weaker-than-expected guidance.
The Los Angeles-based company reported earnings per share of $2.04, falling short of the $2.06 consensus estimate. Revenue came in at $1.75 billion, slightly above expectations of $1.73 billion.
KB Home delivered 3,631 homes in the quarter, up 8% year-over-year, while the average selling price rose 3% to $480,900.
However, the company's outlook disappointed investors. KB Home forecasts full-year housing revenues between $6.85 billion to $6.95 billion, below analyst projections of $7.01 billion. The homebuilder also expects its homebuilding operating income margin to be 11.1% to 11.2%, lower than the 11.5% analysts were modeling.
"We experienced variability in demand across the quarter, with softening in late June through July, as buyers continued to evaluate elevated mortgage interest rates, and general economic concerns were rising," said CEO Jeffrey Mezger.
KB Home's backlog of homes under contract fell to 5,724 units valued at $2.92 billion, down from 7,008 homes worth $3.40 billion a year ago.
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