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Oct 31, 2020

Hovnanian Q4 2020 Earnings Report

Reported increased gross margin and pretax income for Q4 2020.

Key Takeaways

Hovnanian Enterprises reported a decrease in total revenues for the fourth quarter of fiscal 2020, but an increase in homebuilding gross margin percentage and income before income taxes. The company's consolidated backlog dollars increased significantly, and consolidated contracts per community also improved.

Total revenues decreased by 4.2% to $683.4 million in Q4 2020.

Homebuilding gross margin percentage increased 290 basis points to 17.4%.

Consolidated contracts per community improved 73.7% year-over-year to 16.5 contracts per community.

The dollar value of consolidated contract backlog increased 61.3% to $1.42 billion.

Total Revenue
$683M
Previous year: $714M
-4.2%
EPS
$5.54
Previous year: $6.79
-18.4%
Contract Cancellation Rate
18%
Previous year: 21%
-14.3%
Gross Profit
$138M
Previous year: $110M
+25.0%
Cash and Equivalents
$263M
Free Cash Flow
$99.3M
Previous year: $8.06M
+1130.9%
Total Assets
$2.57B
Previous year: $1.88B
+36.8%

Hovnanian

Hovnanian

Hovnanian Revenue by Geographic Location

Forward Guidance

Hovnanian expects revenue between $2.5 and $2.7 billion for fiscal year 2021.

Positive Outlook

  • Expects to grow revenues to between $2.5 and $2.7 billion
  • Anticipates achieving more operating efficiencies
  • Expects to further improve profitability
  • Controls all the lots needed to meet growth expectations in fiscal 2021
  • Controls almost 90% of the lots needed to meet delivery objectives for fiscal 2022

Revenue & Expenses

Visualization of income flow from segment revenue to net income