KB Home's stock is experiencing a significant uptick following the release of its fourth-quarter earnings report, which surpassed Wall Street's expectations. The homebuilder reported earnings per share of $2.52, exceeding the consensus estimate of $2.44. Additionally, the company posted revenue of $2.00 billion, slightly above the anticipated $1.98 billion. The strong performance was driven by a 17% increase in home deliveries compared to the previous year, attributed to faster build times and a robust demand for homeownership despite the challenges posed by high mortgage interest rates. CEO Jeffrey Mezger highlighted the company's strategic investments in land acquisition and development, which are expected to fuel future growth and community expansion.
The positive earnings report also included a promising outlook for fiscal year 2025, with projected revenue between $7.00 billion and $7.50 billion, aligning closely with market expectations. KB Home's strategic focus on expanding its scale and profitability, along with its commitment to returning capital to shareholders, has bolstered investor confidence. The company opened 106 new communities in 2024 and achieved the highest level of customer satisfaction in its history, further solidifying its position in the market.
KB Home (KBH) shares have surged 9.32% to $70.05 as of early Tuesday morning, up from the previous close of $64.08 on January 13th.