KB Home shares plummet 10% on worse-than-expected results

Published 24/03/2025, 21:22
KB Home shares plummet 10% on worse-than-expected results

LOS ANGELES - KB Home (NYSE:KBH) reported first quarter earnings that fell short of analyst expectations and reduced its full-year revenue outlook, sending shares plunging over 10% in after-hours trading on Monday.

The homebuilder posted earnings per share of $1.49 for the quarter ended February 28, missing the consensus estimate of $1.59. Revenue came in at $1.39 billion, below analyst projections of $1.5 billion and down 5% YoY.

KB Home delivered 2,770 homes in Q1, a 9% decrease from the prior year period. However, the average selling price rose 4% to $500,700.

"Consumers are working through affordability concerns and uncertainties related to macroeconomic and geopolitical issues, which are causing them to move slowly in their homebuying decisions," said Jeffrey Mezger, Chairman and CEO.

The company lowered its fiscal 2025 revenue guidance to a range of $6.60 billion to $7.00 billion, citing weaker order trends in the first quarter. KB Home now expects an average selling price between $480,000 and $495,000 for the full year.

Net orders declined 17% YoY to 2,772 homes in Q1. The company’s backlog value fell 21% to $2.20 billion.

KB Home repurchased 753,939 shares of its stock for $50 million during the quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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