By Sam Boughedda
Investing.com -- KB Home (NYSE:KBH) shares dropped 5.7% in extended trading, adding to the regular session's 4.6% loss after the company reported earnings that missed expectations.
The homebuilding company announced earnings per share of $1.47 on revenue of $1.4 billion. Analysts polled by Investing.com anticipated EPS of $1.54 on revenue of $1.5 billion.
"Our first quarter results reflect solid year-over-year growth, with diluted earnings per share increasing 44%. Market conditions are healthy, driven by a low supply of available inventory and favorable demographics, along with steady employment and wage growth." said Jeffrey Mezger, CEO.
"While we grew our revenues 23%, as the quarter progressed, supply chain issues intensified and an already-constrained construction labor force was further stressed, which extended our build times and delayed completions and planned deliveries," added Mezger.
The company reported homes delivered were approximately even at 2,868, with the average selling price rising 22% to $486,100. In addition, homebuilding operating income grew 49% to $169.6 million.
KB's ending backlog value increased 55% to $5.71 billion, its highest first-quarter level since 2007.
The company expects housing revenue for fiscal 2022 to be in the range of $7.2 billion to $7.6 billion. It also sees the average selling price between $490,000 to $500,000.