Skip to Content
MarketWatch

Hovnanian stock soars toward a 6-month high after profit, revenue and gross margin rise in latest quarter

Shares of Hovnanian Enterprises Inc. (HOV) shot up 13% toward a six-month high in morning trading Thursday, after the home builder reported fiscal fourth-quarter profit, revenue and gross margin that all rose from a year ago as home deliveries increased. Net income for the quarter to Oct. 31 rose to $52.5 million, or $7.41 a share, from $40.6 million, or $5.54 a share, in the same period a year ago. Revenue grew 19.2% to $814.3 million. Homebuilding gross margin percentage, after cost of sales interest expense and land charges, rose two percentage points to 19.4%. There were no analyst estimates of results provided by FactSet. For the year to Oct. 31, consolidated contract dollars increased 2.6% to $2.89 billion (6,023 homes, compared with $2.81 billion (6,953 homes) last year. For November, the dollar value of consolidated contracts rose 10.5% to $239.7 million (467 homes) from $217.0 million (493 homes). "Given the solid level of sales per community, an increase in our community count and higher gross margin on current sales and homes in backlog, we are anticipating significant growth in profitability in fiscal 2022 beginning with a strong first quarter," said Chief Executive Ara Hovnanian. The stock has soared 271% year to date, while the iShares U.S. Home Construction ETF (ITB) has rallied 47% and the S&P 500 has gained 25%.

-Tomi Kilgore

 

(END) Dow Jones Newswires

12-09-21 1032ET

Copyright (c) 2021 Dow Jones & Company, Inc.