Hovnanian Enterprises (NYSE:HOV) Issues Quarterly Earnings Results

Hovnanian Enterprises (NYSE:HOV) released its earnings results on Wednesday. The construction company reported $2.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.98) by $3.60, Zacks reports. Hovnanian Enterprises had a net margin of 2.14% and a return on equity of 15.33%.

Here are the key takeaways from Hovnanian Enterprises’ conference call:

• Hovnanian beat its internal guidance for the quarter — total revenue was $632 million, adjusted EBITDA was $63 million, and adjusted pre-tax income was $31 million, all coming in meaningfully above their guided ranges.
• Margins remain under pressure as incentives (mainly mortgage rate buydowns) rose to 12.6% of average sales price, contributing to a 24% year?over?year decline in profit despite some cost reductions and faster cycle times.
• Operational shift toward higher?margin to?be?built homes — QMIs fell to 742 (down 30% YoY) while to?be?built sales increased to 29% and delivered ~780 bps higher margins than QMIs, helping position margins to improve as newer communities deliver.
• Financial position strengthened — liquidity of $471 million (second?highest quarter), net debt?to?capital improved to 41.4% (vs. 146.2% in 2020), and recent refinancing converted most debt to unsecured, increasing financial flexibility.
• Management issued cautious near?term guidance — Q2 revenue of $625–725 million, adjusted gross margin of 13–14%, adjusted EBITDA of $30–40 million, and adjusted pre?tax income of breakeven to $10 million, while forecasting a rebound in the back half of fiscal 2026.

Hovnanian Enterprises Trading Down 0.2%

NYSE:HOV traded down $0.22 during trading hours on Wednesday, hitting $122.68. The company had a trading volume of 74,453 shares, compared to its average volume of 99,701. Hovnanian Enterprises has a 1 year low of $81.15 and a 1 year high of $162.05. The company has a market cap of $729.92 million, a P/E ratio of 16.38 and a beta of 2.31. The company has a 50-day moving average of $115.32 and a 200 day moving average of $125.08. The company has a current ratio of 1.58, a quick ratio of 0.40 and a debt-to-equity ratio of 0.04.

Institutional Investors Weigh In On Hovnanian Enterprises

Several hedge funds and other institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Hovnanian Enterprises by 5.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,979 shares of the construction company’s stock worth $312,000 after buying an additional 156 shares in the last quarter. Jane Street Group LLC increased its position in shares of Hovnanian Enterprises by 436.3% during the first quarter. Jane Street Group LLC now owns 9,106 shares of the construction company’s stock worth $953,000 after acquiring an additional 7,408 shares during the period. Cetera Investment Advisers acquired a new stake in shares of Hovnanian Enterprises in the second quarter valued at $506,000. Legal & General Group Plc boosted its holdings in Hovnanian Enterprises by 6.9% in the second quarter. Legal & General Group Plc now owns 5,239 shares of the construction company’s stock valued at $548,000 after purchasing an additional 337 shares during the period. Finally, Russell Investments Group Ltd. grew its stake in Hovnanian Enterprises by 26.1% during the 2nd quarter. Russell Investments Group Ltd. now owns 2,422 shares of the construction company’s stock worth $253,000 after purchasing an additional 502 shares in the last quarter. 65.40% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

HOV has been the topic of a number of recent analyst reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Hovnanian Enterprises in a research report on Thursday, January 22nd. Wall Street Zen downgraded shares of Hovnanian Enterprises from a “hold” rating to a “sell” rating in a report on Saturday, December 27th. Finally, Zacks Research upgraded shares of Hovnanian Enterprises from a “strong sell” rating to a “hold” rating in a research report on Monday, November 10th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat, the company has an average rating of “Hold” and an average price target of $120.00.

Hovnanian Enterprises Company Profile

Hovnanian Enterprises, Inc is a publicly traded homebuilding company primarily engaged in the acquisition, development and construction of residential properties. Headquartered in Red Bank, New Jersey, the company operates through a network of regional homebuilding divisions that design and deliver a range of housing solutions, including single-family detached homes, townhomes and condominiums. Hovnanian combines land development, architectural design and construction services with in-house mortgage and insurance offerings to provide a comprehensive homebuying experience.

The company markets its communities under several branded product lines tailored to different buyer segments and price points.