By Dhirendra Tripathi
Investing.com – D.R. Horton Inc (NYSE:DHI) stock fell 1.4% Monday as supply chain disruptions led the largest U.S. homebuilder to cut its forecast for annual revenue and homes closed.
Besides shortages and delivery delays in certain building materials, the company also blamed tightness in the labor market for its revised forecast.
The ongoing quarter is the last in the company’s 2021 financial year.
The company now expects its revenue for the ongoing financial year to come in between $27.4 billion and $27.6 billion, below its previous expectation of $27.6 billion to $28.1 billion.
D.R. Horton now expects homes closed between 81,300 and 81,700 units, compared to its prior outlook of 83,000 to 84,500 units.
The company said the net effect of changes is expected to have a minimal impact on its guidance for earnings.
It said the strong pace of home starts in the current quarter has kept pace and that it still expects to grow its homes closed at a double-digit percentage in the next financial year compared to the current year.
The pandemic has forced companies to shut factories and prune production, particularly in Asia, thus disrupting supply chains. U.S. companies have scrambled to meet soaring demand. New capacities are being established and several firms have raised their minimum wages while labor remains in short supply.