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Hovnanian lowers fiscal 2021, Q4 guidance on supply-chain delays

Shares of Hovnanian Enterprises Inc. (HOV) fell 3% in the extended session Tuesday after the home builder lowered its guidance for the full-year 2021 and the fourth quarter ending Oct. 31, saying it was "not immune to the same supply-chain delays that our peers have mentioned recently." Those snags "have been even more pronounced" in the month since its September fiscal third-quarter call, Chief Executive Ara K. Hovnanian said in a statement. Fourth-quarter revenues are seen in a range between $780 million and $830 million, and adjusted EBITDA expected to be between $85 million and $100 million. Hovnanian called for revenues between $2.75 billion and $2.80 billion for fiscal 2021, and an adjusted EBITDA between $330 million and $345 million. A "healthy" contract pace, with higher home prices and margins, along with an increase in community count, "should lead to further growth in both total revenues and adjusted pretax income in fiscal 2022," the company said. The company had guided fourth-quarter revenues between $830 million and $880 million, and adjusted EBITDA between $100 million and $115 million. For fiscal 2021, the guidance in early September called for revenues between $2.80 billion and $2.85 billion, and adjusted EBITDA between $345 million and $360 million. Hovnanian shares ended the regular trading day up 1.5%.

-Claudia Assis

 

(END) Dow Jones Newswires

10-05-21 1646ET

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