KB Home (KBH) - Get Report shares are lower in after-hours trade after the homebuilder's fiscal third-quarter earnings fell from a year earlier but exceeded analyst expectations, and the average selling price of its homes declined.
For the quarter ended Aug. 31 the Los Angeles company reported net income fell to 73 cents a share from 87 cents in the year-earlier quarter. Revenue was $1.16 billion versus $1.23 billion.
Analysts surveyed by FactSet were expecting KB to report earnings of 66 cents a share on revenue of $1.17 billion.
The company reported a 7% decline in the average selling price of its homes to $381,400, due to what it said was a shift in the mix of the homes it offers in the West Coast region.
Net orders increased 24% in the quarter. And the backlog at the end of the quarter totaled $2.3 billion. The company touted the backlog as a tailwind heading into next year.
"We expect to continue to grow our community count in 2020 [and are] well positioned for an excellent start to the new year," Chief Executive Jeffrey Mezger said in a statement.
KB Home shares were trading down 1.7% after hours Wednesday. They closed up 2.8% at $32.32 in the regular session.