Shares of homebuilder D.R. Horton Inc. (DHI) - Get Free Report tumbled in early trading on Monday, Sept. 25 after the company slashed its 2017 cash flow expectations in half to $150 million from $300 million on hurricane-related delays.
D.R. Horton said the negative impact from recent hurricanes has weighed on operations. At the same time, the company said it expected backlog conversion to be about 85% for the fourth quarter of fiscal 2017, down from previous estimates of backlog conversion between 88% and 90% for the period.
The number one U.S. homebuilder said it expects selling, general and administrative expenses as a percentage of homebuilding revenues to be about 8.6% in the fourth quarter, up from previous estimates of between 8.3% and 8.4%. But Fort Worth-based D.R. Horton said it's unlikely recent hurricanes will impact preliminary 2018 earnings expectations.
D.R. Horton shares are up 35% since the start of the year. Just after the open Monday, shares were down 0.3% to $36.79.
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