KB Home stock slips as revenue comes in below Wall Street consensus

KB Home shares slipped in the extended session Wednesday after the homebuilder’s earnings and order backlog value topped Wall Street estimates but its reported revenue fell short of consensus.

KB Home
KBH,
0.32%

shares declined 3% after hours, following a 0.3% advance in the regular session to close at $43.37.

The company reported second-quarter net income of $143.4 million, or $1.50 a share, compared with $52 million, or 55 cents a share, in the year-ago period. Revenue rose to $1.44 billion from $914 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of $1.33 a share on revenue of $1.48 billion.

The company said its order backlog at the end of the quarter had soared 126% in value from a year ago, to $4.29 billion, while analysts had forecast $3.94 billion.

“With a backlog value above $4 billion, we are poised to deliver a substantial increase in revenue this year, at solid margins that we anticipate will contribute to a return on equity of roughly 20%,” said Jeffrey Mezger, KB Home chairman and chief executive, in a statement. “As we look to 2022, our backlog, together with our expected community count growth, positions our company for another year of healthy expansion.”