KB Home's (KBH) fiscal Q1 results and ongoing geopolitical tensions in the Middle East have prompted the company to reduce its full-year guidance, Oppenheimer said.

The brokerage said in a Tuesday note that weaker consumer confidence has weighed on housing demand, limiting near-term visibility. The investment firm said the fiscal Q1 results came in below its estimates and the orders were modestly below the company's internal expectations. It added that net orders slightly beat consensus.

The company lowered its fiscal 2026 guidance, reducing projected housing revenue to about $5.15 billion at the midpoint and trimming its expected home closings by roughly 9% to around 10,750 units, according to the note.

Oppenheimer said the guidance cut is likely to outweigh management's expectation for gross margin improvement in H2, potentially weighing on the stock in the near term.

The firm has a perform rating on the stock.

Shares of KB Home were down 1.9% in Wednesday trading.

Price: 51.94, Change: -1.00, Percent Change: -1.89