Post-Earnings Coverage - Hovnanian Enterprises
LONDON, April 10, 2015 /PRNewswire/ --
Editor Note: For more information about this release, please scroll to bottom.
Investor-Edge.com has issued free post-earnings coverage on Hovnanian Enterprises Inc. (NYSE: HOV). On March 12, 2015, the company reported its financial results for Q1 FY15 (period ended January 31, 2015). Click on http://get.Investor-Edge.com/pdf/?c=Hovnanian%20Enterprises&d=10-Apr-2015&s=HOV to read our free earnings review on Hovnanian Enterprises Inc. (Hovnanian). During Q1 FY15, the company's total revenues and adjusted EBITDA rose 22.4% Y-o-Y and 84.8% Y-o-Y, respectively. Chairman, President, and CEO, Ara K. Hovnanian, stated that the company is pleased with the year-over-year improvements in net contracts and net contracts per community that it reported for Q1 FY15. Our free coverage report can be accessed at:
http://get.Investor-Edge.com/pdf/?c=Hovnanian%20Enterprises&d=10-Apr-2015&s=HOV
Earnings Overview
During Q1 FY15, Hovnanian's total revenues increased to $445.71 million from $364.05 million in Q1 FY14. The company's total revenues outperformed Bloomberg analysts' forecast of $434.57 million for Q1 FY15. Hovnanian's homebuilding gross margin percentage, before interest expense and land charges included in cost of sales, was 18.2% for Q1 FY15 compared with 18.8% in Q1 FY14. Moreover, the company's adjusted EBITDA rose to $21.26 million in Q1 FY15 from $11.51 million in Q1 FY14. Free research on HOV can be downloaded in PDF format at:
http://get.Investor-Edge.com/pdf/?c=Hovnanian%20Enterprises&d=10-Apr-2015&s=HOV
In Q1 FY15, Hovnanian reported pre-tax loss of $19.68 million compared to pre-tax loss of $23.89 million in Q1 FY14. The company's net loss narrowed down to $14.38 million, or $0.10 loss per diluted common share, in Q1 FY15 from net loss of $24.52 million, or $0.17 loss per diluted common share, in Q1 FY14. For Q1 FY15, analysts from Bloomberg had expected Hovnanian to report net loss of $13.81 million, or $0.08 loss per diluted common share.
Hovnanian's consolidated deliveries improved 10.9% to 1,149 homes in Q1 FY15 from 1,036 homes in Q1 FY14. The company's dollar value of consolidated net contracts increased 23.3% to $503.16 million in Q1 FY15 from $408.02 million in Q1 FY14. Furthermore, the number of consolidated net contracts increased 20.8% to 1,319 homes in Q1 FY15 from 1,092 homes in Q1 FY14.
As of January 31, 2015, Hovnanian's total liquidity was $325.4 million compared to $338.4 million as of January 31, 2014. Furthermore, the company's total liquidity at the end of Q1 FY15 included $269.3 million of homebuilding cash and cash equivalents, $5.1 million of restricted cash required to collateralize letters of credit and $51.0 million of availability under the unsecured revolving credit facility. Sign up and read the free analyst's notes on HOV at:
http://get.Investor-Edge.com/pdf/?c=Hovnanian%20Enterprises&d=10-Apr-2015&s=HOV
Mr. Hovnanian informed that the early signs are that the spring selling season is off to an encouraging start. If the housing market continues to strengthen, the company is hopeful that the sequential decline in gross margin it experienced will reverse itself during the H2 FY15, he added.
Mr. Hovnanian also stated that as the company moves forward, its focus remains on continuing to grow its revenues, so that the company can gain further efficiencies and return many of its operating metrics to normal levels. Assuming no changes in market conditions, with the additional communities the company expects to open later this year, FY16, beginning in seven months, should be a breakout year in deliveries and revenues, which should lead to a substantial increase in profitability as compared to recent years, he further asserted. Visit Investor-Edge and access the latest research on HOV at:
http://get.Investor-Edge.com/pdf/?c=Hovnanian%20Enterprises&d=10-Apr-2015&s=HOV
Stock Performance
On the day of the earnings release, March 12, 2015, Hovnanian's stock gained 2.35 % to end the session at $3.48. Since then, the stock has moved both ways with gains outperforming losses. However, on last close, Thursday, April 09, 2015, the company's shares finished at $3.67, which was 0.54% below its previous day's closing price of $3.69. The stock vacillated between $3.62 and $3.73 during the session. A total of 1.11 million shares were traded which was below their three months average volume of 2.18 million. The company's shares have gained 3.97% in the last one month. However, over the previous three trading sessions and over the past three months, the company's shares have fallen by 1.34 % and 7.79 %, respectively. Shares in Hovnanian closed above their 50-day moving average of $3.57. Furthermore, the stock traded at a PE ratio of 1.88 and has a Relative Strength Index (RSI) of 56.89.
Sneak Peek to Corporate Insider Trading
In the last one month, there were 3 insider transactions made by one individual. On March 20, 2015, Thomas J. Pellerito, Chief Operating Officer at Hovnanian, disposed 70,282 shares of the company at an average price of $3.41 per share and for a total value of $239,752. Complimentary in-depth research on HOV is available at:
http://get.Investor-Edge.com/pdf/?c=Hovnanian%20Enterprises&d=10-Apr-2015&s=HOV
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