Shares of KB Home (KBH) - Get Report were rising in premarket trading Thursday after the homebuilder reported second-quarter earnings that topped analysts' expectations for the period despite falling revenue.
The Los Angeles-based company reported second-quarter revenue of $1.02 billion and earnings of 51 cents per share, compared with year-earlier revenue of $1.10 billion and earnings of 57 cents per share. Analysts were expecting the company to report revenue of $943 million and earnings of just 39 cents.
"We are pleased with our second-quarter performance, as we made significant progress on our Returns-Focused Growth Plan. Two of the key objectives of this Plan are to grow our business and strengthen our balance sheet," said CEO Jeffrey Mezger.
The company reported a 15% increase in net home orders to 4,064 with net order value increasing by $170 million to $1.53 billion.
"This quarter's results demonstrate further achievement in both areas, with average community count growth of 17% year over year - our most substantial increase in four years - and a 930-basis point reduction in our debt to capital ratio, to 45.8% over the same period," Mezger said.
Shares rose 7.5% in trading to $25.230.