KB Home down after hours following earnings

Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down the key metrics of KB Home's recent earnings report.

Video transcript

ADAM SHAPIRO: We've got to get back to Jared Blikre. He's got the latest on earnings from KB Home. Jared.

JARED BLIKRE: That's right. The stock is down a couple of percentage points in after hours trading. And looking at their second quarter results, it was a miss on the top line. So revenue, it came in at $1.44 billion. Now that's up 58% year-over-year, but not as high as the Street estimate of $1.49 billion.

Now earnings per share was a beat at $1.50. That's up $0.55 per year, year-over-year. And the estimate was lower by $0.18. Deliveries up 40%, to 3,504 homes. Net orders, up 145%. The Street was expecting only 135%, so that translates into 4,300 homes they have to build. And the total backlog is 10,034.

I guess the good news is lumber prices have halved over the last couple months. And here's a quote from the earnings report, "with a backlog value of $4 billion, we are poised to deliver a substantial increase in revenue this year at solid margin rates that we anticipate will contribute to a return on equity of roughly 20%."

So the stock down a little bit on that miss. But overall, the other metrics looking pretty good.