The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Hovnanian Enterprises missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP loss per share dropped.
Gross margins shrank, operating margins grew, net margins grew.
Hovnanian Enterprises logged revenue of $358.2 million. The eight analysts polled by S&P Capital IQ looked for a top line of $384.1 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $269.6 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 -$0.08. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.10 per share. GAAP EPS were -$0.08 for Q1 versus -$0.17 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 14.3%, 310 basis points worse than the prior-year quarter. Operating margin was 0.3%, 20 basis points better than the prior-year quarter. Net margin was -3.2%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $399.3 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $1.86 billion. The average EPS estimate is $0.00.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 518 members out of 1,088 rating the stock outperform, and 570 members rating it underperform. Among 285 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Hovnanian Enterprises a green thumbs-up, and 168 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 $4.46.
Looking for alternatives to Hovnanian Enterprises? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Hovnanian Enterprises to My Watchlist.