Goldman Likes Hovnanian's (HOV) Q4 Performance, But Remains Netural...for Now
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Price: $141.01 -5.18%
Rating Summary:
1 Buy, 4 Hold, 5 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Rating Summary:
1 Buy, 4 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
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Goldman Sachs is out with a few observations on Hovnanian Enterprises (NYSE: HOV) following its fourth-quarter report, which was released earlier in the session. For a refresher, click here.
Goldman noted the return to pre-tax profitability and beats on orders, EPS, and margins were positives (Note: Hovnanian reported GAAP loss of 59 cents per share and adjusted EPS of 2 cents. The Street was looking for a loss of 9 cents per share.)
November orders growing 18.5 percent were light compared with Toll Brothers (NYSE: TOL), at 34 percent growth, overall order activity remained "robust" for the group as a whole.
Goldman was modeling orders of 1,253 units, versus Hovnanian's 1,289 units reported. Gross margins of 15.3 percent outpaced consensus expectations of 14.3 percent and Goldman's view of 14.6 percent.
Finally, Goldman noted, "[Hovnanian] accelerated its land spend to $128m (from $118mn in 3Q2012) during the quarter and announced an increase in its land banking arrangement with GSO Partners for up to an additional $125mn."
The firm rates Hovnanian at Neutral and expects shares to trade in-line with the group. Hovnanian is down 5.8 percent on the session.
For an analyst ratings summary and ratings history on Hovnanian Enterprises click here. For more ratings news on Hovnanian Enterprises click here.
Shares of Hovnanian Enterprises closed at $5.49 yesterday.
Goldman noted the return to pre-tax profitability and beats on orders, EPS, and margins were positives (Note: Hovnanian reported GAAP loss of 59 cents per share and adjusted EPS of 2 cents. The Street was looking for a loss of 9 cents per share.)
November orders growing 18.5 percent were light compared with Toll Brothers (NYSE: TOL), at 34 percent growth, overall order activity remained "robust" for the group as a whole.
Goldman was modeling orders of 1,253 units, versus Hovnanian's 1,289 units reported. Gross margins of 15.3 percent outpaced consensus expectations of 14.3 percent and Goldman's view of 14.6 percent.
Finally, Goldman noted, "[Hovnanian] accelerated its land spend to $128m (from $118mn in 3Q2012) during the quarter and announced an increase in its land banking arrangement with GSO Partners for up to an additional $125mn."
The firm rates Hovnanian at Neutral and expects shares to trade in-line with the group. Hovnanian is down 5.8 percent on the session.
For an analyst ratings summary and ratings history on Hovnanian Enterprises click here. For more ratings news on Hovnanian Enterprises click here.
Shares of Hovnanian Enterprises closed at $5.49 yesterday.
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