KB Home Rises on Unexpected Fourth-Quarter Profit

KB Home, the Los Angeles-based homebuilder that targets first-time buyers, rose the most in two months after reporting an unexpected fourth-quarter profit.

KB Home climbed 6.42 percent to $15.25 at 4:10 p.m. in New York Stock Exchange composite trading after saying net income in the three months ended Nov. 30 was $17.4 million, or 23 cents a share. Eight analysts surveyed by Bloomberg estimated a median loss of 18.5 cents. KB Home, which cut costs as demand for new homes slumped, expects to post a 2011 profit, according to Chief Financial Officer Jeff Kaminski.