Shares of KB Home (KBH) rose significantly in after-hours trading after the home construction company beat earnings estimates for its quarter ended in November.
The stock was up 5.28% in post market action, after having gained 4.07% to $21.98 a share in regular hours.
Revenue came in at $1.34 billion, just beating Wall Street expectations of $1.33 billion. Diluted earnings per share were 96 cents, better than the 93 cents analysts had predicted on an adjusted basis. Net income was $96 million. The company also bought back 1.8 million shares, and is authorized, under its current buyback program, to repurchase an additional 2.2 million shares.
While home deliveries increased modestly to 3,389, average selling prices dropped about 5%.
"Fiscal 2018 was a year of considerable progress, as we achieved or exceeded most of the financial targets under our three-year Returns-Focused Growth Plan within two years," said Jeffrey Mezger, chairman, president and chief executive officer. He added, "we meaningfully enhanced our profitability, producing an operating income margin within our 2019 target range, and improved our return metrics above their target levels."
Home sales is an area many on Wall Street are watching, as the U.S. economy lingers somewhere around the peak of the economic cycle and the Federal Reserve watches inflation, as it determines the number of rate hikes it will implement in 2019.
KB Homes had a rough 2018, but is now up more than 11% in the last month.