kb home executives said that issues with supplies and hiring enough workers harmed the company’s ability to complete construction of homes early in 2022 and financial results missed expectations in a wednesday report sending shares lower kb home kbh reported fiscal firstquarter profit of 1343 million or 147 a share up from 102 a share a year ago total revenue increased to 14 billion from 114 billion the year prior while homebuilding revenue rose to 139 billion from 114 billion as kb home delivered 2868 homes roughly even with the year before analysts on average expected earnings of 154 a share on homebuilding revenue of more than 15 billion with deliveries of 3180 homes according to factset shares fell more than 4 in afterhours trading following a 47 decline in the regular session “while we grew our revenues 23 as the quarter progressed supply chain issues intensified and an alreadyconstrained construction labor force was further stressed which extended our build times and delayed completions and planned deliveries” chief executive jeffrey mezger said in a statement “we will continue to work on addressing issues as they arise to navigate these challenges” despite the difficulties kb home executives maintained their annual sales guidance which calls for 72 billion to 76 billion in homebuilding revenue but increased expectations for the average selling price for homes by 10000 executives now expect their new homes to sell for 490000 to 500000 this year after previously stating 480000 to 490000 the national association of home builders’ monthly confidence index declined for the fourth consecutive month in march while the underlying index that gauges home builders’ expectations for singlefamily home sales in the next six months dropped 10 points to a reading of 70 the lowest level for that metric since june 2020 inflationary effects on materials and difficulty hiring workers were cited as reasons for that decline for more home builder confidence sinks on concerns about future home sales “low inventories are supporting building activity but worker shortages high prices and limited material availability remain constraints” rubeela farooqi chief us economist at high frequency economics wrote in a research note when that report was released kb home stock has suffered amid the downturn falling 17 in the past three months as the sp 500 index spx has declined 45