KB Home's stock plummeted 5.18% during intraday trading on Wednesday, following the company's disappointing first-quarter earnings report and reduced full-year outlook.

The homebuilder reported diluted earnings per share of 52 cents for the quarter, significantly down from $1.49 in the same period last year. Revenue fell 23% to $1.08 billion, with home deliveries decreasing 14% to 2,370 units. The company cited slower-than-expected order growth during the quarter.

KB Home also cut its annual guidance, now expecting between 10,000 and 11,500 home deliveries for the fiscal year, down 1,000 from previous estimates. Housing revenue guidance was lowered by approximately $450 million. Company executives noted that concerns surrounding the conflict in Iran have introduced additional uncertainty for consumers, with prospective buyers being deterred by the war. CEO Robert McGibney stated that while the company saw solid momentum through January and February, the last few weeks have been softer than expected due to the geopolitical situation.