KB Home Stock Gains as Deliveries Surge, Driving Profit Above Estimates

Financial Performance - Homes delivered increased 17% to 3,978 units, and the average selling price rose 3% to $501,000 [1] - Homebuilding operating income grew 27% to$ 229.1 million, and homebuilding operating margin increased by 60 basis points to 11.5% [1] - Fourth-quarter earnings per share (EPS) were $2.52, with revenue up 19% year-over-year to$ 2 billion, both exceeding analysts' forecasts [4] Market and Demand Trends - New orders climbed by about 40% due to continuing demand and improved market conditions, despite ongoing mortgage interest rate challenges [1] - CEO Jeffrey Mezger noted that homeownership demand continued to grow and market conditions have improved [5] Strategic Investments - The company spent over $2.8 billion in 2024 on land purchases and development, with plans to increase investment again in 2025 [1] Stock Performance - KB Home shares rose over 3% to$ 66.16 in intraday trading Tuesday and have gained about 10% over the past 12 months [1] - Trading volume for KB Home shares was 2.76 million on Tuesday [2]