KB Home Returns To Profitability As Orders Rise

By Dividend.com Staff,

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KB Home ( KBH ) reported that its backlog rose to a four-year high, helping to return the homebuilder to profitability after consecutive quarterly losses. The company reported quarterly net income of $3.3 million, or 4 cents per share, compared to a loss of $9.6 million a year earlier. Revenue for the quarter jumped 16% to nearly $425 million.

Net orders rose 3% to about 1,900 homes in the third quarter, while the company's potential future revenue in backlog jumped by more than 30% to $744.7 million. "It is clear that the recovery in housing is gaining momentum across the country as inventory levels are declining and home prices are on the rise," KB Home Chief Executive Jeffrey Mezger said.

KB Home is the nation's fifth largest homebuilder, and is known for building eco-friendly or green homes. KBH closed Thursday at $13.11, within 5% of its 52 week high and more than 100% above its 52 week low of $5.02.

Shares of KB Home are up 95% YTD, following years of slumping share prices.

The Bottom Line
Shares of KB Home ( KBH ) have a .76% dividend yield, based on last night's closing stock price of $13.11. The stock has technical support in the $10-$11 price area. If the shares can firm up, we see overhead resistance around the $15-$16 price levels.

KB Home ( KBH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: KBH

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