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Jan 31, 2022
Hovnanian Q1 2022 Earnings Report
Hovnanian reported mixed results for the first quarter of fiscal year 2022 with increased pretax profit and improved gross margins, but a slight decrease in total revenues.
Key Takeaways
Hovnanian Enterprises reported an 81% year-over-year increase in pretax profit and a 260 basis point increase in gross margin percentage. Despite a slight decrease in total revenues, the company saw a 13% increase in consolidated backlog dollars and a 21% increase in consolidated controlled lots.
Pretax profit increased by 81% year-over-year.
Gross margin percentage increased by 260 basis points year-over-year.
Consolidated backlog dollars increased by 13% to $1.89 billion.
Consolidated controlled lots increased by 21%.
Revenue by Geographic Location
Forward Guidance
Hovnanian Enterprises is reiterating its financial guidance for the second quarter and full year of fiscal 2022, with expectations of strong growth in revenues, gross margin, and pretax income.
Positive Outlook
- Total revenues for Q2 2022 are expected to be between $700 million and $750 million.
- Gross margin, before cost of sales interest expense and land charges, for Q2 is expected to be between 23.0% and 25.0%.
- Adjusted pretax income for Q2 is expected to be between $60 million and $75 million.
- Total revenues for fiscal 2022 are expected to be between $2.80 billion and $3.00 billion.
- Fully diluted earnings per share for fiscal 2022 are expected to be between $26.50 and $32.00.
Challenges Ahead
- Financial guidance assumes no adverse changes in current market conditions.
- Guidance excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements.
- Supply chain disruptions and labor shortages may impact future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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