KB Home Higher on Report of Jump in New Orders and Value

KB Home's net orders for the fourth quarter grew 42% to the highest Q4 level since 2005. Net order value increased 50%. The shares are up.
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Shares of KB Home  (KBH) - Get Report, one of the nation’s largest homebuilders, rose Wednesday amid strong orders numbers in its fourth-quarter earnings report.

“Net orders for the quarter grew 42% to 3,937, the company’s highest fourth-quarter level since 2005, with net order value increasing by $525.5 million, or 50%, to $1.58 billion,” KB said.

“Both net orders and net order value increased in all of the company’s four regions, with net order value growth ranging from 30% in the Southwest region to 69% in the Southeast region.”

Further, “the company’s cancellation rate as a percentage of gross orders for the quarter improved to 14% from 22%,” it said.

KB shares recently traded at $36.09, up 5.7%. They have firmed 1% over the past 12 months.

“Companywide, net orders per community averaged 5.6 per month, up 51% compared to 3.7.

"The company’s ending backlog increased 54% to 7,810 homes. Ending backlog value grew 63% to $2.96 billion, the company’s highest fourth-quarter backlog value since 2005,” KB said.

“Each of the Company’s four regions generated substantial year-over-year growth in backlog value, with increases ranging from 34% in the Southwest region to 93% in the West Coast region. 

"Average community count for the quarter decreased 8% to 234. Ending community count of 236 was down 6%.”

Overall, fourth-quarter profit fell 14% to $106.1 million, or $1.12 a share, from $123.2 million, or $1.31, in the year-earlier quarter. Revenue slid 23% to $1.19 billion from $1.56 billion, reflecting the negative impact of covid-19.