KB Home quarterly revenue falls 20% as orders drop 12%
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KB Home reported fiscal third-quarter revenue of $1.30bn, down 20 percent from a year earlier, as deliveries fell 19 percent to 2,732 homes.
Orders weakened too. The earnings release shows net orders down 12 percent to 2,604 and a cancellation rate of 18 percent, up from 17 percent.
Backlog moved the other way. The number of homes in backlog rose 2 percent to 4,398, its first increase in four years, while backlog value climbed 3 percent to $2.05bn.
Net income fell to $65.3m from $109.8m. KB Home maintained full-year guidance of 10,500 to 11,000 deliveries and $4.90bn to $5.10bn in housing revenue. Management said housing conditions had weakened since June as higher mortgage rates pressured affordability.
