KB Home shares fell in midday trading after the company announced a decline in home sales and quarterly results that fell well short of analysts’ expectations.

The Westwood homebuilder sold 1,793 homes in the quarter ended Aug. 31, down slightly from the 1,825 homes sold in the same period last year. Sales were hindered by delays in both construction and customer mortgage closings, the company said.

KB reported net income of $ 28.4 million (28 cents a share) for the quarter, compared to $27.3 million (30 cents a share) in the same period last year. Revenue rose 7 percent to $589 million as sale prices for homes rose.

Analysts surveyed by Thomson Reuters expected the company to report net income of 55 cents a share on revenue of $740.8.

Shares fell 5 percent or 80 cents in midday trading on Wednesday to $16.17 on the New York Stock Exchange.