NEW YORK (TheStreet) -- KB Home (KBH) shares are up 3.96% to $15.55 in pre-market trading on Friday after the home builder and seller reported its second quarter earnings before the opening bell today.
The Los Angeles-based company reported second quarter net income of $9.6 million, or 10 cents per share, two cents better than analysts' 8 cent per share expectations.
Revenue for the period increased 10.3% over the previous year to $623 million versus analysts' $619.05 million consensus guidance. The increase in revenue was the company's fifteenth consecutive quarter of year over year increases.
Net orders grew 33% to 3,015 homes in the quarter while housing revenues rose 8%.
The company delivered 1,787 homes in the quarter, a 2% increase from the 1,751 homes they delivered a year earlier.
The average selling price for one of their homes increased 6% to $338,500.
TheStreet Ratings team rates KB HOME as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KB HOME (KBH) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income."