11:42 AM EDT, 03/25/2025 (MT Newswires) -- KB Home's ( KBH ) fiscal Q2-to-date orders improved after the company cut base home prices in certain communities to stimulate demand, BofA Securities said in a Tuesday note.

The company reported fiscal Q1 earnings Monday of $1.49 per diluted share, down from $1.76 a year earlier, as revenue fell to $1.39 billion from $1.47 billion.

The homebuilder lowered its 2025 revenue outlook to $between $6.6 billion and $7 billion, from $7 billion to $7.5 billion previously, after fiscal Q1 orders fell short. In mid-February, KB Home ( KBH ) reduced base prices by an average of $15,000-$16,000 in select communities, which helped net orders improve in the past five weeks, BofA said.

KB Home ( KBH ) also adjusted its margin expectations following the price reductions. The company forecasts a sequential decline in fiscal Q2 margins but expects them to improve in the second half of the year as it benefits from higher sales volumes.

BofA Securities lowered its price objective on KB Home ( KBH ) stock to $62 from $67 and maintained a neutral rating on the company.

Shares of KB Home ( KBH ) were down 3.6% in recent Tuesday trading.

Price: 59.59, Change: -2.20, Percent Change: -3.56