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.