HCDI - Harbor Custom Development stock plunges on its call for FY22 guidance miss

2023-03-08 09:41:20 ET

• Harbor Custom Development ( NASDAQ: HCDI ) stock sank 18.2% in Wednesday morning trading after the homebuilder said it does not expect to meet its guidance targets for 2022, based on its preliminary estimates .
• The company expected to end 2022 with revenue of $61M-65M (vs. $63.20M consensus), and adjusted EBITDA loss of $7M-$5M.
• The primary drivers of the miss were a cancellation of a sale of real estate in Punta Gorda, Florida, which was previously under contract and expected to close in Q4; cost overruns associated with two fee build projects that are now in final stages of completion; and an impairment charge that was recorded to one of the company’s multi-family properties.
• The company is set to publish its 2022 results by March 31.
• On Monday, Harbor Custom reduced its headcount by 56%.

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