Hovnanian Enterprises Cuts Q4, FY Outlook Due To Supply Chain Delays

Hovnanian Enterprises Inc. (HOV), Tuesday lowerd its guidance for the fourth quarter and full year 2021 due to “supply chain delays.”

“We are not immune to the same supply chain delays that our peers have mentioned recently, which have been even more pronounced in the month since our last quarterly conference call,” stated CEO and Chairman Ara Hovnanian.

For the fourth quarter, the company expects revenues between $780 million and $830 million, adjusted pretax income between $45 million and $60 million and adjusted EBITDA between $85 million and $100 million.

Previously, the company expected fourth-quarter revenues between $830 million and $880 million, adjusted pretax income between $60 million and $75 million and adjusted EBITDA between $100 million and $115 million.

For fiscal year 2021, the company expects revenues between $2.75 billion and $2.80 billion, adjusted pretax income between $160 million and $175 million and adjusted EBITDA between $330 million and $345 million.

Previously, the company expected full-year revenues between $2.80 billion and $2.85 billion, adjusted pretax income between $175 million and $190 million and adjusted EBITDA between $345 million and $360 million.

“As we look forward, we believe that today’s more rational, healthy contract pace, which has higher home prices and gross margins, along with an increase in community count, should lead to further growth in both total revenues and adjusted pretax income in fiscal 2022. We currently expect to begin fiscal 2022 with a strong first quarter compared to the first quarter of fiscal 2021,” concluded Hovnanian.

HOV closed Tuesday’s trading at $95.98, up $1.38 or 1.46%, on the NYSE. The stock, however, slipped $2.80 or 2.92% in the after-hours trading.

Source: Read Full Article