UPDATE: Hovnanian Reports Higher-Than-Expected Q4 Loss

reported a wider-than-expected loss for the fiscal first quarter. The Red Bank, New Jersey-based company posted a quarterly loss of $14.4 million, or $0.10 per share, versus a year-ago loss of $24.5 million, or $0.17 per share. Its revenue climbed 22.4% to $445.7 million from $364 million. However, analysts were expecting a loss of $0.06 per share on revenue of $435.37 million. Home-building gross margin shrank to 18.2%, compared to 18.8%, in the year-ago quarter. Consolidated deliveries rose 10.9% y/y to 1,149 homes in the first quarter, from 1,036 homes. The dollar value of consolidated net contracts surged 23.3% y/y to $503.2 million from $408.0 million. Adjusted EBITDA climbed 84.8% to $21.3 million from $11.5 million. As of January 31, 2015, the dollar value of consolidated contract backlog rose 13.5% to $925.5 million, versus $815.3 million as of January 31, 2014. At the end of the fiscal first quarter, total liquidity was $325.4 million, down from $338.4 million at January 31, 2014. "We were pleased with the year-over-year improvements in net contracts and net contracts per community that we reported for the first quarter of 2015; however, we are disappointed with the decline in gross margin we experienced both year-over-year and sequentially," stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. "The early signs are that the spring selling season is off to an encouraging start. If the housing market continues to strengthen, we are hopeful that the sequential decline in gross margin we experienced will reverse itself during the second half of fiscal 2015." Hovnanian shares rose 0.88% to $3.43 at 11:00 a.m. ET.