Artesian-Arts

Strong home demand fuels Hovnanian Enterprises quarterly results (NYSE:HOV)

Hovnanian Enterprises (NYSE:HOV) fiscal Q3 net income of $15.4M, or $2.27 per share, swings from a net loss of $7.6M, or $1.27 per share, in the year-ago quarter as the homebuilder saw improvement in contracts, revenue, EBITDA, pretax income, and liquidity vs. the year-ago quarter.

Expects “meaningful improvements” in revenue, EBITDA, and profitability during fiscal 2021, said Chairman, President, and CEO Ara K. Hovnanian.

HOV rises 4.1% in early trading.

Total revenue for the three months ended July 31, 2020 was $628.1M, up 30% Y/Y; homebuilding gross margin, after coast of sales interest expense and land charges, was 13.6% vs. 14.0% in the year-ago quarter.

Number of consolidated contracts increased 47% to 2,226 homes.

Q3 consolidated deliveries were 1,553 homes, up 31% Y/Y.

Dollar value of consolidated contract backlog was $1.23B at July 31, 2020, up 17% Y/Y.

Contract cancellation rate for consolidated contracts was 18% vs. 19% a year earlier.

Conference call at 11:00 AM ET.

Previously: Hovnanian reports Q3 results (Sept. 3)

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