By Ezequiel Minaya
Home builder KB Home said Wednesday that revenue climbed 21% in the fourth quarter, though weakness in its financial-services segment dragged on profit.
For KB Home, backlog -- a gauge of the company's housing starts -- rose 11% during the quarter from a year earlier. At the same time, deliveries climbed 19% to 3,060 homes while new orders rose 20%.
Revenue rose 21% to $1.19 billion from $985.8 million a year ago.
Financial services, however, posted a loss of $700,000, down from a profit of $4 million a year earlier, weighing on earnings. Net income slipped to $37.5 million in the quarter from $44 million. On a per-share basis, profit fell to 40 cents from 43 cents.
Results were still narrowly stronger than expected, with analysts surveyed by Thomson Reuters predicting 39 cents a share on $1.15 billion in revenue.
Shares of Los Angeles-based KB Home rose 2.7% after hours to $17.05.
U.S. housing starts slipped 18.7% in November, according to the Commerce Department, but remained at levels suggesting steady demand for single-family homes. There is concern, however, that a climb in mortgage rates in 2017 could cool the sector.
Write to Ezequiel Minaya at email@example.com
(END) Dow Jones Newswires
January 11, 2017 17:20 ET (22:20 GMT)
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