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KB Home beats Wall Street estimates for earnings and revenue in Q4

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KB Home (NYSE: KBH) said on Tuesday that its earnings and revenue in the fiscal fourth quarter topped Wall Street estimates despite the ongoing Coronavirus pandemic that has so far infected more than 23 million people in the United States and caused a little under 388 thousand deaths.

Shares of the company were reported more than 1.5% up in extended trading on Tuesday. At £25.48 per share, KB Home has recovered more than 200% from a low of £8.09 per share in March 2020 when the COVID-19 crisis wreaked havoc on the U.S. housing market.

KB Home’s Q4 financial results versus analysts’ estimates

KB Home said that its net income in the fourth quarter printed at £77.58 million that translates to 82 pence per share. In the same quarter last year, the home builder had posted a higher 96 pence of net income per share.

In separate news from the United States, Zoom Video Communications Inc. said it will launch a secondary share sale to raise £1.10 billion. The video chat company priced its shares at roughly ten times the price at which it debuted on the Nasdaq Stock Exchange in 2019.

KB Home registered £870 million of revenue in the recent quarter that represents a 23% year over year decline. According to FactSet, experts had forecast the Los Angeles-based company to record an even lower £830 million of sales in the fourth quarter. Their estimate for per-share GAAP earnings stood at 68.06 pence per share.

In the prior quarter (Q3), the housebuilding firm had registered £730 million of revenue, as per the report published in September.

CEO Jeffrey Mezger’s comments on Tuesday

According to CEO Jeffrey Mezger, 2020 was extraordinary for KB Home that saw a 42% annualised growth in Q4 net orders. Mezger said:

“Housing market conditions continue to be robust, as the pandemic has helped propel demand for homeownership. KB Home has started 2021 with a strong position to both expand our scale and deliver that growth at superior margins. Most notably, we expect meaningfully higher revenue and earnings in 2021 to drive significant expansion of our return on equity.”

KB Home closed almost flat on average in the stock market last year. At the time of writing, the former Fortune 500 company has a market capitalisation of £2.26 billion and has a price to earnings ratio of 10.27.

The post KB Home beats Wall Street estimates for earnings and revenue in Q4 appeared first on Invezz.

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