KB Home (NYSE:KBH) shares moved lower after the US homebuilder reported an earnings miss for the first quarter and lowered its 2025 sales guidance.
For fiscal 2025, the company now expects housing revenue in the range of $6.6 billion to $7 billion, down from its previous forecast of $7 billion to $7.5 billion. This is below the Street consensus of $7.07 billion.
For the three months ended February 28, revenue was down 5% from the year-ago quarter at $1.39 billion, short of the $1.5 billion expected.
Earnings per share of $1.49 missed estimates of $1.59.
The number of homes delivered decreased by 9% to 2,770. Net orders were down 17%, resulting in a decrease of backlog homes to 4,436.
“Although we missed our sales goals for the first quarter, we are encouraged by the significant improvement in weekly sales and normalizing absorption pace over the last five weeks,” KB Home CEO Jeffrey Mezger said in a statement.
“While our sales trends have improved, we are reducing our revenue guidance for fiscal 2025 primarily to reflect the lower level of net orders we generated in the first quarter.”
Shares of KB Homes traded down 3.5% at about $60 late morning on Tuesday.