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Jul 31, 2024
Hovnanian Q3 2024 Earnings Report
Hovnanian Enterprises reported strong third quarter results with increased revenues and income before income taxes.
Key Takeaways
Hovnanian Enterprises reported an 11% increase in total revenues and a 38% increase in income before income taxes for the third quarter of fiscal year 2024. The company also saw a 24% growth in consolidated community count and a 34% increase in total consolidated lots controlled. The midpoint of full year adjusted income before income tax guidance was increased by 11% to $313 million.
Total revenues increased by 11.2% to $722.7 million.
Income before income taxes increased by 38.2% to $97.3 million.
Consolidated community count increased by 23.5% to 126 communities.
Total consolidated lots controlled increased by 34.0% to 39,516 lots.
Hovnanian
Hovnanian
Hovnanian Revenue by Segment
Hovnanian Revenue by Geographic Location
Revenue by Segment
Home Sales Revenue
CapyFin.comLand & Other Rev Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comRevenue by Geographic Location
Northeast Revenue
CapyFin.comSoutheast Revenue
CapyFin.comWest Revenue
CapyFin.com Forward Guidance
The Company is increasing guidance for total revenues, adjusted income before income taxes, adjusted EBITDA, fully diluted earnings per share and common book value per share for the full fiscal year.
Positive Outlook
- Total revenues are expected to be between $2.90 billion and $3.05 billion.
- Adjusted homebuilding gross margin is expected to be between 21.5% and 22.5%.
- Adjusted income before income taxes is expected to be between $300 million and $325 million.
- Adjusted EBITDA is expected to be between $420 million and $445 million.
- Fully diluted earnings per share is expected to be between $29 and $31.
Challenges Ahead
- Guidance assumes no adverse changes in current market conditions.
- Guidance excludes further deterioration in the supply chain.
- Guidance excludes material increases in mortgage rates.
- Guidance excludes increases in inflation or cancellation rates.
- Guidance excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $209.89 on July 31, 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income