One of the nation’s largest home builders, KB Home, released its fourth-quarter and year-end earnings report Thursday in which it touted a 25% jump in housing revenues year-over-year, (ended Nov. 30) to $980 million.
The Los Angeles-based builder delivered 2,580 homes, up 16% from 2,229 a year ago, representing its highest number of fourth-quarter deliveries since 2009, while the overall average selling price increased 8% to $379,800.
In its analysis of the report, however, Keefe, Bruyette & Woods Research said orders were 4.1% below its forecast while absorption pace was flat.
Jeffrey Mezger, KB’s president and CEO says the fourth quarter results set the company up nicely for 2016. "While inclement weather and trade shortages in certain markets tempered our fourth-quarter deliveries and revenues, we have a positive rhythm in our business and substantial momentum as we enter 2016," said Mezger. "With our higher backlog giving us strong visibility for potential future deliveries and revenues, and housing market conditions expected to remain generally healthy, we believe we are well-positioned strategically, financially and operationally for further success in 2016. As we move forward, we will remain focused on executing on our strategy, providing an outstanding customer experience, and creating stockholder value."