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Oct 31, 2022

Hovnanian Q4 2022 Earnings Report

Hovnanian Enterprises reported an increase in total revenues and income before income taxes for the fiscal fourth quarter ended October 31, 2022.

Key Takeaways

Hovnanian Enterprises reported an 8.9% increase in total revenues to $886.8 million for the fourth quarter of fiscal 2022, compared to $814.3 million in the same quarter of the prior year. Income before income taxes increased 18.1% to $91.5 million compared to $77.4 million in the prior year. Net income was $55.6 million, or $7.24 per diluted common share, compared to $52.5 million, or $7.41 per diluted common share, in the fourth quarter of the previous fiscal year.

Total revenues increased 8.9% to $886.8 million in the fourth quarter of fiscal 2022.

Homebuilding gross margin percentage, before cost of sales interest expense and land charges, increased 140 basis points to 24.2%.

Income before income taxes for the fourth quarter of fiscal 2022 increased 18.1% to $91.5 million.

Net income was $55.6 million, or $7.24 per diluted common share, for the three months ended October 31, 2022.

Total Revenue
$887M
Previous year: $814M
+8.9%
EPS
$7.24
Previous year: $7.41
-2.3%
Gross Profit
$215M
Previous year: $165M
+30.3%
Free Cash Flow
$114M
Previous year: $126M
-9.4%
Total Assets
$2.56B
Previous year: $2.32B
+10.4%

Hovnanian

Hovnanian

Forward Guidance

The current level of demand for new homes is significantly lower and continues to be burdened by high levels of inflation, a sharp increase in mortgage rates and concerns about an economic recession.