Hovnanian Enterprises IncHOV
▼ NegativeCapitalrelevance
Revenue decline, net loss, and first guidance miss in 23 quarters due to delayed deliveries.
Impact on stocks 1
Consumer Discretionary
Hovnanian Enterprises IncHovnanian Enterprises reported third-quarter results that showed a revenue decline to $705.7 million from $800.6 million a year earlier, along with a net loss of $0.70 per diluted share, but the company highlighted a 5.1% rise in backlog value to $881.9 million and record land efficiency as signs of a longer-term turnaround. Adjusted homebuilding gross margin improved to 14.6%, with guidance for 15% to 16.5% in the fourth quarter, supported by newer communities priced with today's higher incentives. The company's land strategy now has 87% of controlled lots optioned rather than owned, the highest share in its history, and total liquidity stands at $379.8 million, well above its target range. However, adjusted pretax income fell to a loss of $2.3 million, marking the first miss of guidance in 23 quarters, due to delayed deliveries at joint ventures, and consolidated domestic contracts slipped 4.6% to 1,155 homes. Hedge fund ownership increased from 18 to 25 funds, while short interest is at 7.99% of float, and the stock trades at a forward P/E of 13.50 as of August 28.
Hovnanian Enterprises IncRevenue decline, net loss, and first guidance miss in 23 quarters due to delayed deliveries.