KB Home (NYSE:KBH) stock fell 2.13% (As on June 19, 7:59:28 PM UTC-4, Source: Google Finance) after the company delivered a beat in its second-quarter results, surpassing analyst expectations on both the top and bottom lines. For the quarter, homes delivered were 3,523, compared to 3,666, average selling price increased to $483,000, up from $479,500, homebuilding operating income totaled $188.2 million, compared to $202.1 million. The homebuilding operating income margin was 11.1%, compared to 11.5%. Excluding total inventory-related charges of $1.2 million for the current quarter and $4.3 million for the year-earlier quarter, the homebuilding operating income margin was 11.1%, compared to 11.7%. The housing gross profit margin was of 21.1% was even with the year-earlier quarter. Financial services pretax income rose 16% to $13.3 million, partly due to increased equity in income of the Company’s mortgage banking joint venture. This was largely driven by a higher volume of both interest rate locks and loan originations, as 86% of the buyers financing their home purchases in the current quarter used the joint venture, up from 80%. Total pretax income, which included a $12.5 million gain associated with the sale of a privately held technology company in which the Company held an ownership interest, increased to $221.1 million, compared to $214.9 million. Net income rose 2% to $168.4 million.

Moreover, Net orders for the quarter increased 2% to 3,997. Net order value rose 7% to $2.03 billion, reflecting the growth in net orders and a higher average selling price of those orders. The Company’s ending backlog homes of 6,270 and ending backlog value of $3.12 billion were down 14% and 10%, respectively.

KBH in the second quarter of FY 24 has reported the adjusted earnings per share of $2.15, beating the analysts’ estimates for the adjusted earnings per share of $1.80. The company had reported the adjusted revenue of $1.71 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $1.66 billion.

For its 2024 full year, the company expects housing revenues to be in the range of $6.70 billion to $6.90 billion, Average selling price in the range to be in the range of $485,000 to $495,000, Homebuilding operating income as a percentage of revenues to be in the range of 11.0% to 11.4%, Housing gross profit margin to be in the range of 21.1% to 21.5%, and ending community count in the range of 250 to 255.