The largest home builder in the US, D.R.Horton (NYSE:DHI) saw its shares ease in premarket trade after it announced that it was cutting its forecast for 2017 cash flow from operations by half due to delays stemming from the recent hurricanes.
For fiscal 2017, D.R. Horton slashed its cash flow expectations to US$150mln from US$300mln.
The homebuilder said in a statement that it did not expect the hurricanes to affect fiscal 2018 outlook.
Backlog conversion rate target lowered
The Fort Worth, Texas-based company also cut expectations for its fourth-quarter backlog conversion rate. It is now looking at a conversion rate of about 85%, down from its previous guidance of 88% to 90%.
In addition, the homebuilder also hiked its selling, general and administrative cost estimate as a percent of homebuilding revenue to 8.6% from 8.3% to 8.4%.
In premarket trade, the company’s shares were down 3.74% at US$35.52.