The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Hovnanian Enterprises beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share contracted. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins shrank, operating margins expanded, net margins expanded.
Hovnanian Enterprises notched revenue of $487.0 million. The eight analysts polled by S&P Capital IQ expected revenue of $464.0 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $341.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.06. The five earnings estimates compiled by S&P Capital IQ forecast -$0.19 per share. GAAP EPS were -$0.59 for Q4 versus -$0.91 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.3%, 480 basis points worse than the prior-year quarter. Operating margin was 5.1%, 280 basis points better than the prior-year quarter. Net margin was -17.3%, 1,150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $374.1 million. On the bottom line, the average EPS estimate is -$0.15.
Next year's average estimate for revenue is $1.82 billion. The average EPS estimate is -$0.19.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 502 members out of 1,070 rating the stock outperform, and 568 members rating it underperform. Among 297 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Hovnanian Enterprises a green thumbs-up, and 186 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hovnanian Enterprises is hold, with an average price target of $3.17.
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