Hovnanian (HOV) Slumps as One-Time Items Hit Q4 Results; Sees Sector Recovery Ahead
Hovnanian Enterprises, Inc. (NYSE: HOV) shares are down on the session following fourth-quarter results issued earlier in the session.
The home builder said revs rose 42.6 percent to $487 million in the latest quarter, while its net loss narrowed to $84.4 million, or 59 cents per share.
Consensus estimates pegged Hovnanian with revs of $461.1 million and loss of 9 cents per share, though the loss estimate might not compare due to one-time items.
Hovnanian noted that the loss included about $87 million on extinguishment of debt.
Contract cancellations rose two points to 23 percent.
Dollar value on contracts rose 38.1 percent to $131.5 million. Deliveries improved 40.6 percent to 1,245 homes while Hovnanian's backlog was $742.2 million for 2,145 homes, which was an increase of 34.4 percent and 29.0 percent, respectively.
No guidance was issued, but CEO Ara K. Hovnanian said he believes that the industry is in a "period of modest recovery."
Shares of Hovnanian are off 3.6 percent Thursday, while peers are largely higher on the session.
The home builder said revs rose 42.6 percent to $487 million in the latest quarter, while its net loss narrowed to $84.4 million, or 59 cents per share.
Consensus estimates pegged Hovnanian with revs of $461.1 million and loss of 9 cents per share, though the loss estimate might not compare due to one-time items.
Hovnanian noted that the loss included about $87 million on extinguishment of debt.
Contract cancellations rose two points to 23 percent.
Dollar value on contracts rose 38.1 percent to $131.5 million. Deliveries improved 40.6 percent to 1,245 homes while Hovnanian's backlog was $742.2 million for 2,145 homes, which was an increase of 34.4 percent and 29.0 percent, respectively.
No guidance was issued, but CEO Ara K. Hovnanian said he believes that the industry is in a "period of modest recovery."
Shares of Hovnanian are off 3.6 percent Thursday, while peers are largely higher on the session.