KB Home (NYSE:KBH) stock rose 8.79% (As on March 23, 11:25:28 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. The company posted 2,788 deliveries, above estimates of 2,678. The Company’s ending backlog value was $3.31 billion, compared to $5.71 billion. Ending backlog units totaled 7,016, compared to 11,886. Net orders of 2,142 and net order value of $1.00 billion decreased 49% and 53%, respectively, as the combination of higher mortgage interest rates, elevated inflation and other macroeconomic and geopolitical concerns continued to temper demand.

KBH in the first quarter of FY 23 has reported the adjusted earnings per share of $1.45, beating the analysts’ estimates for the adjusted earnings per share of $1.15, according to Refinitiv. The company had reported the adjusted revenue of $1.38 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $1.31 billion. The Company had total liquidity of $1.24 billion, with $260.1 million of cash and cash equivalents and $983.4 million of available capacity under its unsecured revolving credit facility. The Company continued to moderate its land investments in response to soft housing market conditions, with land and land development expenditures for the quarter decreasing 48% to $367.0 million, compared to $704.7 million for the year-earlier quarter. Land acquisition investments included in these amounts decreased 86% to $50.0 million. The Company’s lots owned or under contract totaled 62,404, compared to 68,795, mainly due to homes delivered, reduced land investments and the abandonment of previously controlled lots.

In the 2023 first quarter, the Company repurchased approximately 2.0 million shares of its outstanding common stock at a total cost of $75.0 million, or $38.16 per share. On March 21, 2023, the Company’s Board of Directors authorized the repurchase of up to $500.0 million of the Company’s outstanding common stock, replacing a prior authorization, which had $75.0 million remaining.

For its 2023 full year housing revenues is expected to be in the range of $5.20 billion to $5.90 billion. Average selling price to be in the range of $480,000 to $490,000. Homebuilding operating income as a percentage of revenues in the range of 10.0% to 11.0%, assuming no inventory-related charges. Housing gross profit margin to be in the range of 20.5% to 21.5%, assuming no inventory-related charges.