first-quarter earnings surged 65% from a year ago, driven by more sales of more-expensive homes and cost-cutting.
The Los Angeles-based homebuilder earned $122.7 million, or $2.82 a share, in the quarter, compared with $74.2 million, or $1.75 a share, last year. Revenue was $1.64 billion in the latest period, compared with $1.35 billion last year. Analysts surveyed by Thomson First call were expecting earnings of $2.57 a share on revenue of $1.75 billion.
For the fiscal year ending in November 2005, KB Homes expects to earn $15.75 a share, up from its previous estimate of $14.50 a share. Analysts surveyed by Thomson First Call were expecting $14.59 a share. The stock closed at $116.70 Monday, about 7.5 times the full-year earnings estimate.
Despite bad weather in the West, KB's deliveries rose 11% from a year ago to 6,847 in the first quarter, while the overall average selling price rose 10% to $236,300. All of its regions saw higher average selling prices than in the year-ago quarter.
The company's backlog was 23,334 at Feb. 28, 2005, up 40% from a year ago. The value of the backlog was $5.80 billion, up 58% from a year ago. Backlog value occurred across all of KB's geographic regions, with year-over-year increases ranging from 15% in the central U.S. to 131% in the Southeast region.