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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
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.
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.
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
SPX,
