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Jul 31, 2022
Hovnanian Q3 2022 Earnings Report
Hovnanian reported an increase in revenue and pretax profit for Q3 2022.
Key Takeaways
Hovnanian Enterprises reported an 11.1% increase in total revenues to $767.6 million for the third quarter of fiscal 2022, compared to $690.7 million in the same quarter of the prior year. Income before income taxes increased by 81.1% to $111.9 million. Net income was $82.6 million, or $10.82 per diluted common share, compared to $47.7 million, or $6.72 per diluted common share, in the third quarter of the previous fiscal year.
Total revenues increased 11.1% year-over-year to $767.6 million.
Homebuilding gross margin percentage increased 390 basis points year-over-year to 23.1%.
Income before income taxes increased 81.1% year-over-year to $111.9 million.
Net income increased to $82.6 million, or $10.82 per diluted common share.
Hovnanian
Hovnanian
Hovnanian Revenue by Segment
Revenue by Segment
Home Sales Revenue
CapyFin.comLand & Other Rev Revenue
CapyFin.comFinancial Services Revenue
CapyFin.com Forward Guidance
The Company is increasing its gross margin, EBITDA and pretax profit guidance for the full year of fiscal 2022.
Positive Outlook
- Total revenues are expected to be between $2.80 billion and $3.00 billion.
- Gross margin, before cost of sales interest expense and land charges, is expected to be between 24.0% and 26.0%.
- Adjusted pretax income is expected to be between $310 million and $325 million.
- Adjusted EBITDA is expected to be between $460 million and $475 million.
- Fully diluted earnings per share is expected to be between $32.00 and $33.50.
Challenges Ahead
- Financial guidance assumes no adverse changes in current market conditions, including further deterioration in the supply chain.
- Guidance assumes no material increase in mortgage rates.
- Guidance excludes increased inflation.
- Guidance excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $48.51 at July 29, 2022.
- Anticipate reducing senior secured notes by an additional $100 million during the fourth quarter of fiscal 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income