Shares of D.R. Horton Inc. slumped 3.7% in premarket trade Monday, after the home builder cut expectations for its fourth-quarter backlog conversion rate, citing delays caused by recent hurricanes. The company now expects a conversion rate of about 85%, down from previous guidance of 88% to 90%. The company also raised its selling, general and administrative cost estimate as a percent of homebuilding revenue to 8.6% from 8.3% to 8.4%. For fiscal 2017, D.R. Horton slashed its expectation for cash flow from operations in half, to $150 million from $300 million. The company said it did not expect the hurricanes to affect the fiscal 2018 outlook. The stock had rallied 8.9% over the past three months through Friday, while the SPDR S&P Homebuilders ETF had edged up 0.6% and the S&P 500 had gained 2.6%.
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