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KB Home profit soars

A new KB Home development rises Wednesday in Oceanside, Calif., where it borders the Camp Pendleton Marine base. (Associated Press / The Spokesman-Review)
Associated Press The Spokesman-Review
A new KB Home development rises Wednesday in Oceanside, Calif., where it borders the Camp Pendleton Marine base. (Associated Press / The Spokesman-Review)

KB Home, one of the nation’s biggest homebuilders, said Wednesday that its fiscal first-quarter profit rose 42 percent on higher revenues and improved margins, but reported a 12 percent drop in net home orders.

For the three months ended Feb. 28, the company earned $174.5 million, or $2.02 per share, up from $122.7 million, or $1.41 per share, a year ago.

Revenue rose 34 percent to $2.19 billion, compared to $1.64 billion in the same period last year.

Analysts surveyed by Thomson Financial expected earnings per share of $1.96 for the quarter.

Net housing deliveries grew 15 percent to 7,905 homes. The total average selling price of a KB Home rose 17 percent to $276,200, the company said.

•Adobe Systems Inc., which makes software such as Acrobat for creating digital documents, said Wednesday its first-quarter profit fell 31 percent, due largely to expenses from its acquisition of Macromedia.

Adobe shares dropped nearly 4 percent in aftermarket trading as the company offered a soft income outlook and a revenue target for the current quarter that is below Wall Street’s estimates.

•Shipping company FedEx Corp. on Wednesday said its profit rose 35 percent in the third quarter, lifted by continued growth of business abroad and holding down costs.

For the quarter ended Feb. 28, FedEx earned $428 million, or $1.38 per share, up from $317 million, or $1.03 per share, a year earlier.

Overall revenue for the quarter totaled $8 billion, a 9 percent growth from $7.34 billion a year earlier.

The earnings beat an average estimate of $1.30 per share from analysts polled by Thomson Financial and the company’s own guidance of $1.15 to $1.30.

•Net income at Wall Street firm Morgan Stanley rose 17 percent in its fiscal first quarter on record revenues stemming from growth in both investment banking and fixed-income trading.

The company said Wednesday that during the quarter ended Feb. 28, it $1.64 billion, or $1.54 per share, up from $1.4 billion, or $1.29 per share, in the first quarter of 2005.

Revenue rose 24 percent to $8.48 billion from $6.84 billion a year ago.

Analysts surveyed by Thomson Financial had expected earnings of $1.21 per share on revenue of $7.55 billion.

Shares of Morgan Stanley rose $1.53, or 2.5 percent, to close at $61.94 on the New York Stock Exchange. The stock has traded between $47.66 and $62.15 over the past 52 weeks.