RTTNews | Jan 12, 2022 04:24PM EST

16:24 Wednesday, January 12, 2022 (RTTNews.com) - KB Home (KBH) Wednesday reported an increased profit for the fourth quarter, as revenues surged 40% reflecting increase in homes delivered and selling price. Earnings for the quarter trumped Wall Street estimates, while revenues fell short of expectations.

Fourth-quarter net income rose to $174.2 million or $1.91 per share, up from $106.1 million or $1.12 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.76 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter surged 40% to $1.68 billion from $1.19 billion last year. Analysts had a consensus revenue estimate of $1.71 billion for the quarter.

"We delivered outstanding growth in revenues and margins in our 2021 fourth quarter, leading to a more than 70% year-over-year increase in earnings per share. With the strong finish to 2021, we generated a full-year return on equity of approximately 20%," said Jeffrey Mezger, Chairman, President and Chief Executive Officer.

The company said homes delivered for the quarter rose 28% to 3,679, while average selling price increased 9% to $451,100.

Homebuilding operating income advanced 85% to $214.4 million. The homebuilding operating income margin improved 310 basis points to 12.8%.

Looking forward to the full year 2022, the company expects housing revenues in the range of $7.20 billion to $7.60 billion and average selling price of $480,000 to $490,000.

KBH closed Wednesday's trading at $42.38, up $0.23 or 0.55%, on the NYSE. The stock further gained $0.23 or 0.54% in the after-hours trading.

Read the original article on RTTNews ( https://www.rttnews.com/3254665/kb-home-q4-profit-beats-street-view-but-revenues-fall-short.aspx)

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