LONDON, UK / ACCESSWIRE / July 17, 2018 / If you want access to our free earnings report on KB Home (NYSE: KBH), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KBH. The Company reported its financial results on June 28, 2018, for the second quarter of the fiscal year 2018 (Q2 FY18), ended May 31, 2018. For Q2 FY18, KB Home produced a significant revenue growth, expanded its operating margin, and significantly improved its profitability, reflecting a solid execution on its core business strategy. The Company surpassed analysts' estimates for earnings and revenues in Q2 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

For Q2 FY18, KB Home's total revenues reached $1.10 billion, reflecting an increase of 9.84% from $1 billion in Q2 FY17. The Company's total revenue numbers exceeded analysts' consensus estimates of $1.05 billion.

For the quarter under review, KB Home's deliveries increased 5% to 2,717 homes on a y-o-y basis, while its average selling price rose 4% to $401,800 on a y-o-y basis. The Company's net orders increased 3% to 3,532 on a y-o-y basis, and its net order value decreased 2% to $1.36 billion on a y-o-y basis in Q2 FY18. The Southwest Region, Central Region, and Southeast Region posted y-o-y increases in net order value in the reported quarter.

During Q2 FY18, KB Home had a pre-tax income of $78.31 million, 50.64% higher than $51.98 million in Q2 FY17. The Company had an effective tax rate of approximately 27% in the reported quarter, down from approximately 39% in the prior year's same period, primarily due to the reduction in the federal corporate income tax rate under the Tax Cuts and Jobs Act 2017 (TCJA).

KB Home had a net income of $57.31 million in the quarter ended May 31, 2018, reflecting an increase of 80.32% from $31.78 million in the comparable period of last year. The Company's diluted earnings per share (EPS) also rose 72.73% to $0.57 in Q2 FY18 from $0.33 in Q2 FY17. This was higher than analysts' consensus estimates of $0.49 per share during the reported quarter.

Segment Details

KB Home's Homebuilding segment generated revenues of $1.10 billion in Q2 FY18, 9.86% higher than in the prior-year's corresponding quarter. For the quarter under review, the segment's housing revenues jumped 9.65% to $1.09 billion, while its land revenues advanced 56.50% to $6.91 million on a y-o-y basis. The segment's operating income increased 49.72% to $74.20 million on a y-o-y basis in the reported quarter. Excluding inventory-related charges of $6.50 million in the reported quarter and $6 million in the year earlier same quarter, the Homebuilding segment's operating income margin improved 170 basis points to 7.30% in Q2 FY18. The segment had a pre-tax income of $75.15 million in Q2 FY18, up 52.86% from $49.17 million in Q2 FY17.

During Q2 FY18, KB Home's Financial Services segment's revenues were $2.75 million, 1.03% higher on a y-o-y basis. The Financial Services segment had a pre-tax income of $3.15 million in the quarter under review, up 11.96% from $2.82 million in the previous year's comparable quarter.

Cash Matters

KB Home's Homebuilding segment had cash and cash equivalents of $669.80 million as on May 31, 2018, representing a decrease of 7.05% from $720.63 million as on November 30, 2017. There were no cash borrowings outstanding under the Company's unsecured revolving credit facility at the end of Q2 FY18.

For the first half of 2018, KB Home's net cash used in operating activities was $19.40 million compared to $64.60 million in the first half of 2017.

On May 14, 2018, KB Home's Board of Directors authorized the repurchase of additional shares of its outstanding common stock, bringing the total authorization to 4,000,000 shares. However, no shares have been repurchased under this authorization.

Outlook

KB Home's Board of Directors declared a quarterly cash dividend of $0.025 per share on its common stock, payable on August 16, 2018, to stockholders of record as on August 02, 2018.

Stock Performance Snapshot

July 16, 2018 - At Monday's closing bell, KB Home's stock slightly advanced 0.07%, ending the trading session at $27.01.

Volume traded for the day: 1.24 million shares.

Stock performance in the last month ? up 3.05%; and past twelve-month period ? up 14.16%

After yesterday's close, KB Home's market cap was at $2.39 billion.

Price to Earnings (P/E) ratio was at 11.50.

The stock has a dividend yield of 0.37%.

The stock is part of the Industrial Goods sector, categorized under the Residential Construction industry.

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