KB Home KBH Shares traded lower in Wednesday’s after-hours session after the company reported worse-than-expected financial results and warned of a challenging housing market.

What happened: KB Home said fourth-quarter revenue rose 16% year over year to $1.94 billion, which it missed average analyst estimates of $1.98 billion Gasoline Pro. The US homebuilder reported quarterly earnings of $2.47 per share, which missed estimates of $2.87 per share.

KB Home highlighted its book value of $43.59 per share, up 29% year over year.

“High mortgage rates and persistent inflation, coupled with an uncertain economy, have made homebuyers more cautious since the middle of last year,” he said Jeffrey MetzgerChairman, President and CEO of KB Home.

“Given the industry-wide slowdown in housing starts compared to a year ago, we are also targeting a reduction in direct construction costs and construction times, which should help offset the impact of any pricing adjustments we may make,” Mezger added.

KB Home said it plans to be more aggressive in its pricing ahead of spring, but for now it’s focused on its large backlog of over 7,600 homes, which translates to about $3.69 billion in future revenue.

Revenue in the first quarter is expected to be between $1.25 and $1.4 billion. Average retail prices are expected to range from $490,000 to $500,000.

KB Home noted that “favorable demographics and persistent housing undersupply” give it long-term confidence in the housing market.

See also: Investor optimism continues to improve after Nasdaq adds 1%

KBH price campaign: KB Home has a 52-week high of $50.20 and a 52-week low of $24.78.

The stock fell 4.87% after the close of business to $34.19 at the time of publication Gasoline Pro.

Photo: Paul Brennan from Pixabay.