This Dec. 18, 2011 photo, shows the framework of a new structure in a KB Home community, in Balch Springs, Texas. KB Home’s fiscal fourth-quarter net income fell 20 percent on rising expenses, but its performance beat analysts’ expectations and revenue climbed on an increase in home deliveries and a higher average selling price. (AP Photo/Tony Gutierrez)
LOS ANGELES (AP) — KB Home is increasingly catering to more affluent homebuyers in markets where there is less competition from homes up for resale and foreclosures, and the strategy is paying off.
The homebuilder reported on Wednesday that its fiscal fourth-quarter profit fell 20 percent on rising expenses. Its shares fell 52 cents, or 6.7 percent, to close at $7.22.
But the company’s recent trends show improvement. KB’s new home orders jumped 38 percent from year earlier and home deliveries rose 4 percent. The average selling price of the builder’s homes rose 3 percent.
The surge in home orders drove a 61 percent increase in KB’s backlog of homes under contract at the end of the quarter — at 2,156, the highest year-end level since 2008. Backlog is a leading Login to read more