KB Home's stock tumbled 5.52% in after-hours trading on Tuesday following the release of its first-quarter financial results, which fell short of market expectations.

The homebuilder reported quarterly earnings of 52 cents per share, missing the consensus estimate of 58 cents. Revenue came in at $1.08 billion, below the expected $1.09 billion and representing a 23% decline compared to the same period last year. Key operational metrics also weakened, with homes delivered decreasing 14% year-over-year to 2,370 and the average selling price falling to $452,100 from $500,700.

The sharp drop in after-hours trading reflects investor disappointment with the quarterly performance, particularly the significant contraction in homebuilding operating income, which fell to $33 million from $127.3 million a year ago.