KB Home reported consolidated earnings results for the fourth quarter and full year ended of November 30, 2017. For the quarter, the company reported total revenues of $1,403,138,000 compared to $1,191,942,000 a year ago. Operating income was $131,876,000 compared to $55,994,000 a year ago. Total pretax income was $137,346,000 compared to $55,028,000 a year ago. Net income was $84,346,000 compared to $37,528,000 a year ago. Diluted earnings per share were $0.84 compared to $0.44 a year ago. During the fourth quarter, to drive future community openings, the company invested $393 million in land, land development and fees, with $181 million or 46% of the total representing new land acquisition.

For the full year, the company reported total revenues of $4,368,529,000 compared to $3,594,646,000 a year ago. Operating income was $283,403,000 compared to $152,401,000 a year ago. Total pretax income was $289,995,000 compared to $149,315,000 a year ago. Net income was $180,595,000 compared to $105,615,000 a year ago. Net debt was $1,604,215 against $2,048,063 a year ago. Diluted earnings per share were $1.85 compared to $1.12 a year ago. Return on equity improved 370 basis points to 10.0%, within the company's 2019 target range of 10% to 15%. The company generated $513 million of net operating cash flow in 2017, an increase of $324 million as compared to 2016.

For the year of 2018, the company has increased its 2018 full year gross margin expectations, excluding inventory-related charges, to the range of 17.2% to 17.7%, an improvement of 30 to 80 basis points as compared to 2017. Excluding the impact of the noncash adjustment, the company currently expects effective tax rate for the full year to be approximately 27%. This estimate reflects a fiscal 2018 blended federal rate of 22.2% plus estimate of state taxes.