KB Home Beats Orders Estimate on Housing Rally’s Strength

(Bloomberg) -- KB Home reported stronger-than-expected quarterly orders as buyers rushed to take advantage of historically low mortgage rates. The shares rose the most in more than seven months.

• For the three months through November, signed purchase contracts rose 42% from a year earlier to 3,937, the Los Angeles-based company said in a statement Tuesday. The average estimate of analysts surveyed by Bloomberg was 3,401.

Key Insights

Market Reaction

• The shares were up 7.5% to $36.70 at 9:44 a.m. New York time Wednesday, the best performance in an S&P index of homebuilder stocks. They earlier climbed as much as 11%, the biggest intraday gain since late May. Through Tuesday’s close, KB Home shares had fallen 4.8% in the past 12 months.

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• Click here to read the earnings statement.

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