Hovnanian Enterprises Shares Gain On Raised FY21 Outlook

  • Hovnanian Enterprises, Inc. HOV reported third-quarter sales growth of 10% year-over-year to $690.68 million.
  • Homebuilding gross margin after the cost of sales interest expense and land charges increased 560 bps to 19.2%.
  • SG&A was $60.3 million, or 8.7% of total revenues, for the quarter compared with $59.9 million, or 9.5% a year ago.
  • EPS improved to $6.72 from $2.16 in 3Q20.
  • Consolidated contracts per community decreased 38.9% to 11.6 contracts per community. The contract cancellation rate for consolidated contracts was 16% versus 18% a year ago.
  • Consolidated deliveries decreased 3.5% to 1,498 homes for the quarter.
  • Adjusted EBITDA increased ~59% Y/Y to $103.08 million, and margin expanded by 460 bps to 14.9%.
  • Consolidated Backlog increased by ~42% Y/Y to $1.75 billion. Total controlled consolidated lots increased 20.4% to 31,002.
  • Q4 Outlook: Hovnanian expects total revenues of $830 million - $880 million and adjusted EBITDA of $100 million - $115 million.
  • FY21 outlook: Hovnanian expects total revenues of $2.80 billion - $2.85 billion (prior outlook $2.65 billion - $2.80 billion) and adjusted EBITDA of $345 million - $360 million (prior $310 million - $350 million).
  • Price Action: HOV shares traded higher by 8.40% at $101.71 on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsLong IdeasNewsGuidanceSmall CapMoversTrading IdeasBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!