For the quarter ended Feb. 29, KB’s net income totaled $59.7 million, or 63 cents a share, up from $30 million, or 31 cents, in the year-earlier period. Analysts surveyed by FactSet expected per-share earnings of 45 cents for the latest quarter.
KB reported revenue of $1.08 billion, up 33% from the year-earlier quarter and topping analysts’ forecast of $957.7 million. It was the company’s strongest first quarter for revenue since 2007.
Understandably enough, Chief Executive Jeffrey Mezger’s focus isn’t on quarterly earnings.
“Our principal focus today is the concern for the health and welfare of our employees, customers and business partners, and their families, in light of the wide-ranging efforts to contain Covid-19 and the impact it will have on the global economy,” he said in a statement.
“While our performance in the first quarter was strong, with underlying market conditions that were robust, these results preceded the Covid-19 pandemic declaration, and we are now taking actions to adjust our business in this period of uncertainty.”
He lauded the company’s “strong balance sheet” and over $1.2 billion in liquidity. “With our built-to-order model, we are flexible in aligning our business to demand and building to our sales pace, mitigating inventory risk,” Mezger said.
“While we continue to close homes and generate revenues, we are also taking steps to curtail land acquisition and development until circumstances become more stabilized.”
KB shares at last check stood at $20.67, up 8.3%. They finished the regular session Thursday down 2% at $19.08.