NEW YORK (TheStreet) -- Shares of KB Home (KBH - Get Report) are down by 6.41% to $15.88 at the start of trading on Wednesday, after the company reported 2014 third quarter earnings and revenue results that fell short of analysts' expectations.

The home builder said net income for the most recent quarter increased to $28.4 million from $27.3 million, but declined on a diluted share basis to 28 cents from 30 cents for the 2013 third quarter.

KB Home's total revenue grew by 7% to $589.2 million, from $549 million for the year ago period.

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Analysts polled by Thomson Reuters expected the company to post earnings of 40 cents per share on revenue of $646.8 million.

Separately, TheStreet Ratings team rates KB HOME as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate KB HOME (KBH) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

You can view the full analysis from the report here: KBH Ratings Report

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