D. R. Horton (DHI) Lowers Q4 Revenue Guidance
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D.R. Horton, Inc. (NYSE: DHI), America’s Builder, today reported that the Company is updating its guidance for homes closed, consolidated revenues and home sales gross margin for the fourth quarter of fiscal 2021.
The Company now expects its homes closed for the fourth quarter of fiscal 2021 to be in a range of 21,300 homes to 21,700 homes compared to the previous range of 23,000 homes to 24,500 homes, due to continuing significant disruptions in the supply chain, including shortages and delivery delays in certain building materials along with tightness in the labor market. As a result, the Company now expects its homes closed for fiscal 2021 to increase 24% to 25% from fiscal 2020 to a range of 81,300 homes to 81,700 homes compared to the previous range of 83,000 homes to 84,500 homes.
Due to the lower expected closings volume, partially offset by an expected increase in the average sales price of homes closed during the quarter, the Company now expects its fourth quarter consolidated revenues to be in a range of $7.7 billion to $7.9 billion compared to the prior range of $7.9 billion to $8.4 billion. As a result, the Company now expects its consolidated revenues for fiscal 2021 to increase 35% to 36% from fiscal 2020 to a range of $27.4 billion to $27.6 billion compared to the previous range of $27.6 billion to $28.1 billion.
(Consensus sees Q4 revenue of $8.2 billion)
As strong new home demand and limited housing supply continue to support pricing power across most of its operating footprint, the Company now expects its fourth quarter home sales gross margin to be in the range of 26.5% to 26.8%, an improvement from the previous range of 26.0% to 26.3%.
The net effect of changes to the Company’s guidance for the fourth quarter of fiscal 2021 is expected to have a minimal impact on its earnings versus the Company’s prior guidance.
The Company has maintained a strong pace of home starts in the current quarter and still expects to grow its homes closed at a double-digit percentage pace in fiscal 2022 as compared to fiscal 2021. More detailed fiscal 2022 guidance will be provided in the Company’s year-end earnings release and on its conference call to be held in November.
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