Shares of KB Home (KBH) sank 7% in premarket trading after the homebuilder lowered its outlook for the year, as shrinking consumer confidence hits demand.
The company also reported first quarter revenue and profit that missed Wall Street estimates. It posted earnings per share of $1.49, versus $1.57 expected, and a 5.2% fall in revenue.
The company trimmed its projected 2025 housing revenue to $6.6 billion-$7 billion, compared with its previous range of $7 billion-$7.5 billion.
“Consumer confidence has declined sequentially each month for the past several months, and homebuyers are moving more slowly in making their purchase decisions,” CEO Jeff Mezger said on an analyst call after the report.