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Hovnanian
🇺🇸 NYSE:HOV
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•
Oct 31, 2023

Hovnanian Q4 2023 Earnings Report

Hovnanian reported best quarterly pretax income in more than 16 years, increased net contracts per community, and refinanced secured debt.

Key Takeaways

Hovnanian Enterprises reported strong Q4 2023 results, with total revenues of $887 million and net income of $97.3 million, or $13.05 per diluted share. The company saw a significant increase in income before income taxes, a rise in homebuilding gross margin, and an increase in consolidated contracts. They also refinanced over $600 million of secured debt and total liquidity climbed to $564 million.

Total revenues were $887.0 million, slightly up from $886.8 million in the same quarter of the prior year.

Net income was $97.3 million, or $13.05 per diluted common share, compared to $55.6 million, or $7.24 per diluted common share, in the previous year.

Consolidated contracts increased 55.8% to 938 homes ($564.1 million) compared with 602 homes ($343.7 million) in the same quarter last year.

Total liquidity reached $564.2 million, the highest level since the third quarter of fiscal 2009.

Total Revenue
$887M
Previous year: $887M
+0.0%
EPS
$13.1
Previous year: $7.24
+80.2%
Gross Profit
$21.4
Previous year: $215M
-100.0%
Cash and Equivalents
$434M
Free Cash Flow
$138M
Previous year: $114M
+21.0%
Total Assets
$3.46B
Previous year: $2.56B
+35.0%

Hovnanian

Hovnanian

Forward Guidance

For the first quarter of fiscal 2024, total revenues are expected to be between $525 million and $625 million, adjusted homebuilding gross margin is expected to be between 22.0% and 23.5%, adjusted income before income taxes is expected to be between $25 million and $40 million and adjusted EBITDA is expected to be between $55 million and $70 million.

Positive Outlook

  • Total revenues are expected to be between $525 million and $625 million.
  • Adjusted homebuilding gross margin is expected to be between 22.0% and 23.5%.
  • Adjusted income before income taxes is expected to be between $25 million and $40 million.
  • Adjusted EBITDA is expected to be between $55 million and $70 million.
  • Guidance assumes no adverse changes in current market conditions.

Challenges Ahead

  • Guidance excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $69.48 on October 31, 2023.
  • Guidance assumes no further deterioration in our supply chain.
  • Guidance assumes no material increases in mortgage rates.
  • Guidance assumes no increases in inflation.
  • Guidance assumes no increases in cancellation rates.

Company Overview

Full financial data and analysis

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