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Earnings Results

Sept. 23, 2021, 8:07 a.m. EDT

KB Home is another home builder hemmed in by shortages of supplies, labor

Claudia Assis

KB Home shares fell more than 3% in the extended session Wednesday after the home builder missed Wall Street expectations for its third quarter and said industry-wide supply and labor shortages continued to hamper its operations.

KB Home (NYS:KBH) earned $150.1 million, or $1.60 a share, in the quarter, compared with earnings of $78 million, or 83 cents a share, in the year-ago quarter.

Revenue rose 47% to $1.47 billion, from $999 million a year ago, the company said.

FactSet consensus called for EPS of $1.63 on sales of $1.56 billion.

Quarterly deliveries were hit “by the ongoing industry-wide supply-chain issues and labor shortages that have extended build times,” Chief Executive Jeffrey Mezger said in a statement.

The company is “working through solutions to mitigate the issues and stabilize our construction times.”

Earlier this week, home builder Lennar Corp. (NYS:LEN) also saw its stock fall after quarterly earnings. Lennar said its third-quarter results were hurt by “unprecedented supply-chain challenges” that are likely to continue “into the foreseeable future.”

Several industries are battling pandemic-related labor shortages and are competing for workers. Also this week, FedEx Corp. (NYS:FDX) lowered its guidance for the year, saying that the cost of doing business rose more than it expected thanks to supply-chain disruptions and a tight labor market.

Shares of KB Home ended the regular trading day up 0.7%. The stock has gained 22% this year, compared with gains of around 17% for the S&P 500 index (S&P:SPX) .

Link to MarketWatch's Slice.