Revenue jumped 29 percent to $796 million, topping analysts' estimates as KB Home sold more homes at higher prices. Leah Duncan reports.
Homebuilder KB Home rebounding in the fourth quarter. Revenue jumped 29 percent to $796 million, topping analysts' estimates as it sold more homes at higher prices. Profit also climbed helped by a hefty income tax benefit. Homes delivered jumped nine percent compared to a year ago while the average selling price climbed 17 percent to $351,000. As for new home orders, which points to future growth, that jumped 10 percent. The stock has soared almost 20 percent over the past three months and ticked higher in early trading. Other homebuilders also getting a boost. Company CEO Jeffrey Mezger is looking for that momentum to continue. He said "Looking forward, we believe that our higher backlog and expanded community footprint have positioned us for further success in the coming year." But some analysts are expecting sliding oil prices to impact housing demand, and that could mean less profit for KB Home. After all, the company is heavily exposed to the Houston housing market, and the trickle down effect of lower priced oil could hurt the housing recovery. Bigger rival Lennar will report its results on Thursday. Earnings and revenue expected to rise from a year ago.