KB Home (KBH) saw its stock price plummet 8.72% in after-hours trading on Monday following the release of its first-quarter 2025 financial results that fell short of analysts' expectations. The disappointing earnings report and reduced guidance for the fiscal year triggered a sell-off among investors.
The homebuilder reported earnings per share (EPS) of $1.49, missing the estimated $1.59. Revenue for the quarter came in at $1.392 billion, falling short of the projected $1.499 billion. KB Home's net income for Q1 was $109.557 million, below the $117.2 million analysts had anticipated. The company's housing gross margin stood at 20.2% for the quarter.
Adding to investor concerns, KB Home announced it was reducing its revenue guidance for fiscal 2025. The company cited a lower level of net orders generated in the first quarter as the primary reason for the downward revision. The updated outlook for fiscal year housing revenue now stands at $6.6 billion to $7.0 billion, with the average selling price expected to range between $480,000 and $495,000. This cautious forecast suggests potential headwinds in the housing market and has prompted investors to reassess their positions in the stock.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.