KB Home CEO: ‘we expect an ROE of over 26% this year’

KB Home (NYSE: KBH) on Wednesday said its revenue in the fiscal fourth quarter missed Street estimates. Shares still climbed 5.0% after-hours on better-than-expected earnings, thanks to strong demand that offset supply disruptions.

Q4 results

KB Home said its profit came in at $174.2 million that translates to $1.91 per share. In the same quarter last year, its profit was capped at $106.1 million or $1.11 per share. Operating income jumped 310 basis points to 12.8%.

The California-based company generated $1.68 billion in total revenue that represents an annualised growth of 40%. According to FactSet, experts had forecast $1.77 of EPS on $1.71 billion in revenue.

Other notable figures

Other notable figures include a 12% year-over-year increase in net order value to $1.77 billion. Ending backlog value and home deliveries were up 67% and 28%, respectively, while the rate of cancellation as a percentage of quarterly gross orders remained unchanged at 13%.

KB Home’s full-year profit and revenue printed at $564.7 million and $5.72 billion, respectively – both above last year’s numbers. In the earnings press release, CEO Jeffrey Mezger said:

Future outlook

KB Home now forecast its housing revenue to register between $7.2 billion and $7.6 billion this year. Its estimate for average selling price stands at up to $490,000 versus $451,100 in fiscal 2021. Mezger said: