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KB Home sign
KB Home sign (Mario Tama/Getty Images)

KB Home shares sink after a Q1 earnings miss and chilly start to spring home-buying season

The home builder missed earnings per share and sales estimates as would-be buyers got cold feet.

Nia Warfield

KB Home shares crumbled over 7% in premarket trading Tuesday after the home builder missed Q1 earnings expectations and dialed back its full-year outlook. 

The company reported diluted earnings of $1.49 per share, falling short of Wall Street’s $1.39 forecast, while revenue slipped to $1.39 billion — well below the expected $1.5 billion.

CEO Jeffrey Mezger pointed to economic uncertainty and affordability concerns as key factors cooling buyer confidence. “Demand at the start of this spring’s selling season was more muted than what we have seen historically, despite a healthy level of traffic in our communities,” he said. Spring is typically the hottest time for home sales, making the slowdown all the more concerning.

Feeling the chill, KB Home trimmed its full-year guidance, now expecting housing revenue between $6.6 billion and $7 billion, down from its prior $7 billion to $7.5 billion range. Net home orders also sank 17% year over year to 2,772, leading the company to curb its average selling price expectations and tighten its margin forecast.

Before today’s open, shares of the home builder had fallen about 10% over the past year.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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