Hovnanian Q4 2021 Earnings Report
Key Takeaways
Hovnanian Enterprises reported a 19.2% increase in total revenues to $814.3 million for the fourth quarter of fiscal 2021, compared to $683.4 million in the same quarter of the prior year. Net income for the quarter was $52.5 million, or $7.41 per diluted common share, compared to $40.6 million, or $5.54 per diluted common share, in the fourth quarter of the previous fiscal year. The company's income before income taxes for the quarter was $77.4 million, up 82.5% compared to $42.4 million in the fourth quarter of the prior fiscal year.
Total revenues increased by 19.2% to $814.3 million.
Homebuilding gross margin percentage increased by 200 basis points to 19.4%.
Income before income taxes increased by 82.5% to $77.4 million.
Net income was $52.5 million, or $7.41 per diluted common share.
Hovnanian
Hovnanian
Forward Guidance
For the first quarter of fiscal 2022, Hovnanian Enterprises expects total revenues to be between $640 million and $670 million. Gross margin, before cost of sales interest expense and land charges, is expected to be between 20.5% and 22.0%, and adjusted pretax income is expected to be between $30 million and $35 million.
Positive Outlook
- Total revenues are expected to be between $640 million and $670 million for Q1 2022.
- Gross margin, before cost of sales interest expense and land charges, is expected to be between 20.5% and 22.0% for Q1 2022.
- Adjusted pretax income is expected to be between $30 million and $35 million for Q1 2022.
- Total revenues are expected to be between $2.80 billion and $3.00 billion for fiscal year 2022.
- Fully diluted earnings per share is expected to be between $26.50 and $32.00 for fiscal year 2022.
Challenges Ahead
- Financial guidance assumes no adverse changes in current market conditions, including further deterioration in the supply chain.
- Financial guidance excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $84.26 at October 29, 2021.
- The company cannot provide a reconciliation between its non-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts.
- These items include, but are not limited to, land-related charges, inventory impairment loss and land option write-offs and loss (gain) on extinguishment of debt.
- These items are uncertain, depend on various factors and could have a material impact on GAAP reported results.