In This Article:
Projecting house sales between $7 billion and $7.5 billion and an average selling price ranging from $488,000 to $498,000, KB Home (KBH, Financials) announced its 2025 projection. Assuming no expenses connected to inventories, the business likewise projects a gross profit margin of 20.0% to 21.0%. Later today, KB Home stated in a statement, further specifics on the company's expectations would be presented in a conference call.
Following the release, pre-market trading activity for KB Home increased 10.71% to $70.94 as of 5:05 a.m. EST on Jan. 14. Closing at $64.08, this follows a 1.41% rise during normal trading hours on Jan. 13.
KB Home stated income of $2 billion for the fourth quarter ending November 30, 2024, a 19% rise over the same time previous year. While diluted profits per share developed 36% to $2.52, net income climbed 27% to $190.6 million. The company's release cited quicker development timelines and more home deliveries for the achievement.
With an average selling price climbing 3% to $ 501,000 the business delivered 3,978 houses in the quarter, a 17% rise year over year. Reflecting greater margins, KB Home said, homebuilding operating income climbed 27% to $229.1 million.
Revenue grew 8% to $6.93 billion for the whole fiscal year; diluted profits per share climbed 20% to $8.45. Comparatively to the previous year, KB Home reported investing $2.84 billion in land purchase and development throughout the year, a 58% increase. These outlays are supposed to help with future expansion.
Stock repurchases of $350 million for 2024 were part of shareholder distributions. Book value per share rose 12% to $56.27, KB Home pointed out. As of November 30, 2024, the corporation had overall liquidity of $1.68 billion, including $598 million in cash.
This article first appeared on GuruFocus.