KB Home reports Q3 EPS 51c, consensus 46c
Reports Q3 revenue $1.14B, consensus $1.12B. Deliveries rose 11% to 2,765 homes. Average selling price increased 12% to $411,400. Homebuilding operating income rose 49% to $76.7M. This included inventory-related charges of $8.1M, compared to $3.1M. "We continued to make considerable progress on our three-year returns-focused growth plan with outstanding results in our 2017 third quarter," said Jeffrey Mezger, chairman, president and chief executive officer. "We posted double-digit increases in revenues and earnings, and generated measurable improvement across our key financial metrics. Significantly, we increased our housing gross profit margin on a year-over-year basis, excluding inventory-related charges, and we expect to sustain this favorable comparison on a quarterly basis going into 2018. In addition, with the expansion in our gross margin and a record-low third quarter SG&A ratio, we improved our operating income margin by 100 basis points, extending the upward trend in this important profitability measure."