The home-building company reported net income of $123.2 million, or $1.31 per diluted share, on revenue of $1.56 billion.
Analysts surveyed by FactSet had projected adjusted net income of $120.3 million, or $1.28 a share, on sales of $1.6 billion.
In the same period a year ago, the company posted earnings of 96 cents a share on sales of $1.3 billion. It reported net income of $97 million.
Shares fell 95 cents, or 2.6%, to $36.11 in after-hours trading.
Quarterly estimates had fallen 3.6 cents a share in the past month.
In the upcoming quarter analysts are forecasting adjusted net income of $39.9 million, or 42 cents a share, on sales of $966.5 million.
KB Home is currently trading at a price-to-forward-earnings ratio of 11.9 based on the 12-month estimates of 17 analysts surveyed by FactSet.
Over on Real Money, read Jim Cramer's insights: Superb Homebuilder Lennar Keeps on the Straight and Narrow.