KB Home said Wednesday demand from earlier in the year was sustained throughout its latest quarter, reflecting the strength of the housing market even as the Federal Reserve works to slow the economy.
The home builder recorded net income of $164.4 million, or $1.94 a share, for the second quarter ended May 31, compared to $210.7 million, or $2.32 a share, a year earlier. Analysts polled by FactSet expected earnings of $1.33 a share.
Revenue rose to $1.77 billion from $1.72 billion. Analysts polled by FactSet expected $1.43 billion.
“The improvement in demand we started to see in February was sustained throughout our second quarter, as we achieved monthly sequential increases in our net orders,” said Chief Executive Jeffrey Mezger.
The Fed seeks to fight inflation by slowing the economy through raising rates, causing tighter financial conditions such as higher borrowing costs, lower stock prices and a stronger dollar. The current benchmark federal-funds rate is in a range between 5% and 5.25%.