Updated from 9:47 a.m. EST.
By early afternoon, shares had climbed 7.6% to $19.02.
Trading volume of 10.1 million was more than double its three-month daily average.The homebuilder, one of the nation's largest, said revenues grew 11% over the three months to February with total sales of $450.7 million. Higher revenue was primarily a result of increased housing sales -- in the company's southwest, central and southeast regions homebuilding revenues increased 45%, 18% and 63%, respectively. Backlog increased 21% year over year to $851.6 million, a reflection of both a greater number of homes in backlog and a higher average selling price. The Los Angeles-based business posted net profit of $10.6 million compared to a loss of $12.5 million in the year-ago quarter, marking the first time it has made a profit in a first quarter since 2007. Per-share net income came in at 12 cents. "Building on the momentum and the full-year profitability our business achieved in 2013, we posted net income in the first quarter for the first time since 2007, along with higher average selling prices, increased revenues, expanded gross margins and improved operating leverage," said CEO Jeffrey Mezger in a statement. Analysts surveyed by Thomson Reuters anticipated revenue of $435.3 million, per-share profit of 8 cents, and net income of $6 million. The company managed to beat expectations on each. Must read: Warren Buffett's 10 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates KB HOME as a Hold with a ratings score of C. The team has this to say about their recommendation: "We rate KB HOME (KBH) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow."
- You can view the full analysis from the report here: KBH Ratings Report
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