KB Home beats by $0.07, beats on revs
Reports Q2 (May) earnings of $0.27 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.20; revenues rose 7.7% year/year to $565 mln vs the $558.68 mln consensus.
- Company delivered 1,751 homes in the current quarter, compared to 1,797 homes in the second quarter of 2013.
- The overall average selling price of $319,700 rose $29,300, or 10%, from the second quarter of 2013, marking the seventh consecutive quarter of double-digit year-over-year percentage growth in the Company's average selling price. Average selling prices were higher across all of the Company's homebuilding regions compared to the 2013 second quarter, with increases ranging from 9% in the Southeast region to 23% in the Southwest region.
- As a percentage of homebuilding revenues, operating income rose 440 basis points to 6.1%, compared to 1.7% for the 2013 second quarter, and increased 210 basis points compared to 4.0% for the 2014 first quarter.
- The housing gross profit margin increased 380 basis points to 18.9% from 15.1% for the year-earlier quarter.
- Potential future housing revenues in backlog at May 31, 2014 grew 24% to $1.03 billion from $826.6 million at May 31, 2013, reflecting an increase in the number of homes in backlog and a higher average selling price.
- Total net order value increased 19% to $763.2 million for the 2014 second quarter, up from $639.6 million for the year-earlier quarter.
- Net orders rose to 2,269, up 5% from 2,162 for the year-earlier quarter, and the average community count increased 7% to 191 from 178 for the year-earlier quarter.
- The second quarter cancellation rate as a percentage of gross orders was 28% in 2014, compared to 27% in 2013. As a percentage of beginning backlog, the second quarter cancellation rate was 30% in 2014 and 29% in 2013.