Hovnanian Enterprises (NYSE:HOV) Releases Earnings Results, Misses Expectations By $0.14 EPS

Hovnanian Enterprises (NYSE:HOV) announced its quarterly earnings data on Thursday. The construction company reported ($0.70) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.56) by ($0.14), RTT News reports. Hovnanian Enterprises had a return on equity of 11.23% and a net margin of 1.25%.The firm had revenue of $705.75 million during the quarter, compared to the consensus estimate of $723.50 million. During the same period last year, the company earned $1.99 EPS.

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

• Demand remained uneven as high mortgage rates, inflation, geopolitical uncertainty and affordability concerns caused buyers to delay decisions; quarterly contracts declined by 57 homes year over year to 1,359.
• Third-quarter revenue was $706 million and adjusted EBITDA was $32 million, broadly within guidance, while adjusted pre-tax income was a $2 million loss—slightly below the company’s forecast—primarily because joint-venture income fell short.
• Gross margin improved sequentially to 14.6%, and management expects a larger increase to 15.8% at the midpoint of fourth-quarter guidance as deliveries increasingly come from newer communities underwritten for today’s elevated incentive environment.
• The company ended the quarter with liquidity above its target range, no significant near-term debt maturities, and a more capital-efficient land portfolio, with option lots reaching a record 87% of controlled lots and 82% of lots acquired or controlled since fiscal 2023.
• Fourth-quarter guidance calls for revenue of $800 million–$900 million, adjusted gross margin of 15%–16.5%, adjusted EBITDA of $50 million–$65 million and adjusted pre-tax income of $15 million–$30 million, supported by expected community-count growth and continued margin recovery.

Hovnanian Enterprises Stock Down 7.4%

Shares of NYSE HOV opened at $118.19 on Friday. Hovnanian Enterprises has a 12-month low of $91.52 and a 12-month high of $162.05. The stock’s fifty day simple moving average is $131.35 and its two-hundred day simple moving average is $119.83. The stock has a market capitalization of $692.59 million, a PE ratio of 32.47 and a beta of 1.83. The company has a current ratio of 1.50, a quick ratio of 0.40 and a debt-to-equity ratio of 0.05.

Analyst Upgrades and Downgrades

HOV has been the topic of several research reports. Weiss Ratings upgraded Hovnanian Enterprises from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, July 16th. Citigroup reiterated a “market underperform” rating on shares of Hovnanian Enterprises in a report on Friday. Three analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce” and an average price target of $97.00.

Insiders Place Their Bets

In other Hovnanian Enterprises news, CEO Ara K. Hovnanian sold 12,880 shares of Hovnanian Enterprises stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $125.78, for a total value of $1,620,046.40. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director J Larry Sorsby sold 1,032 shares of the stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $142.57, for a total transaction of $147,132.24. Following the sale, the director directly owned 187,416 shares of the company’s stock, valued at approximately $26,719,899.12. The trade was a 0.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 22.67% of the company’s stock.

Hedge Funds Weigh In On Hovnanian Enterprises

Institutional investors and hedge funds have recently bought and sold shares of the company. State Street Corp lifted its holdings in shares of Hovnanian Enterprises by 8.6% during the 4th quarter. State Street Corp now owns 228,613 shares of the construction company’s stock valued at $22,299,000 after purchasing an additional 18,086 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in Hovnanian Enterprises by 2.0% during the 4th quarter. Dimensional Fund Advisors LP now owns 175,186 shares of the construction company’s stock worth $17,089,000 after buying an additional 3,514 shares during the last quarter. GW&K Investment Management LLC grew its stake in Hovnanian Enterprises by 7.6% during the 4th quarter. GW&K Investment Management LLC now owns 121,488 shares of the construction company’s stock worth $11,850,000 after buying an additional 8,571 shares during the last quarter. Geode Capital Management LLC increased its position in Hovnanian Enterprises by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 111,600 shares of the construction company’s stock valued at $10,888,000 after buying an additional 1,057 shares in the last quarter. Finally, Towle & Co. raised its stake in Hovnanian Enterprises by 51.2% in the fourth quarter. Towle & Co. now owns 99,402 shares of the construction company’s stock valued at $9,696,000 after buying an additional 33,681 shares during the last quarter. 65.40% of the stock is owned by hedge funds and other institutional investors.

Hovnanian Enterprises News Summary

Here are the key news stories impacting Hovnanian Enterprises this week:

• Positive Sentiment: Management forecast fourth-quarter revenue of $800 million to $900 million, above the approximately $784 million analyst consensus. Hovnanian also targeted a 15% to 16.5% gross margin, while reporting that margins improved sequentially for the second consecutive quarter. Hovnanian Q4 revenue and gross margin outlook
• Positive Sentiment: The dollar value of Hovnanian’s consolidated domestic backlog increased 5% year over year, suggesting some continued demand visibility despite difficult market conditions. The company said it met or exceeded guidance on nearly all previously provided metrics. Hovnanian fiscal 2026 third-quarter results
• Neutral Sentiment: On the earnings call, management emphasized its efforts to manage margins and backlog as buyers remain cautious. The company’s outlook implies stronger fourth-quarter revenue, but profitability will remain sensitive to pricing, incentives and housing demand.
• Negative Sentiment: Fiscal third-quarter EPS was a $0.70 loss, missing the $0.56 loss expected by analysts. Revenue of $705.75 million also fell short of the $723.5 million consensus estimate and declined sharply from $1.99 EPS in the year-earlier quarter. Hovnanian earnings report
• Negative Sentiment: The results reflect a “frozen” or continually challenging housing market, with affordability concerns and cautious buyers weighing on homebuilders. The earnings miss and year-over-year deterioration are the main reasons investors have reacted negatively to HOV. Hovnanian weak third-quarter results

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.