D. R. Horton Slips as Supply Chain Issues, Labor Tightness Force Cut in Forecast By Investing.com
By Dhirendra Tripathi
Investing.com – D.R. Horton Inc. (NYSE:) shares fell 1.4% Monday after supply chain disruptions caused the largest U.S.-based homebuilder, Horton Inc. to lower its revenue projections and have homes shut down.
For its revised forecast, Horton Inc (NYSE:) blamed not only shortages or delays in certain building material deliveries but also tightness in labor markets.
The ongoing quarter is the last in the company’s 2021 financial year.
Now, the company expects that its annual revenue of between $27.4 million and $27.6 millions for the current financial year. This compares to its earlier expectation of $27.6 miliarde to $28.1.
D.R. D.R. Horton expects to close homes between 81.300 and 81.700 units. This is compared with its previous outlook that ranged from 83,000 to 84.500 units.
According to Horton, the company expects that changes will have minimal effect on earnings guidance.
The company stated that the pace of new home openings in the current quarter was steady and it expects to continue to increase the number of homes in its closed properties by a double-digit rate in the following financial year.
Companies have had to close factories, especially in Asia, and cut production. This has disrupted supply chains. American companies are trying to keep up with the soaring demands. New capacities are being established and several firms have raised their minimum wages while labor remains in short supply.
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