NYSE$HOV
Hovnanian Enterprises Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Hovnanian reported increased total revenues and pretax income year-over-year.
Hovnanian Enterprises reported a 30.3% increase in total revenues, reaching $628.1 million, and a significant improvement in pretax income to $16.2 million compared to a loss of $7.1 million in the same quarter of the prior year. The company also saw a 47% year-over-year improvement in consolidated contracts. These results reflect a strong recovery in home demand and effective management strategies in response to the COVID-19 pandemic.
- Total revenues increased by 30.3% to $628.1 million compared to the prior year.
- Pretax income improved by $23 million year-over-year, reaching $16.2 million.
- Consolidated contracts increased by 47% year-over-year.
- EBITDA increased 88% to $66.5 million.
Headline financials
Revenue & EPS history
Hovnanian · Revenue · Quarterly
$628M
Revenue by segment
Hovnanian · $640M total across 3 segments · Q3 2020
- Sale of homes$607M—94.8%
- Land sales and other$21.6M—3.4%
- Financial services$11.6M—1.8%
Forward guidance
Hovnanian anticipates meaningful improvements in revenues, EBITDA, and profitability during fiscal year 2021, assuming no material changes in market conditions. The company has pivoted to increasing home prices in virtually all markets since June, which is expected to offset potential cost increases and improve gross margins. The company controls virtually all the lots needed to meet the growth in deliveries expected next year.
Tailwinds
- Expects meaningful improvements in revenues during fiscal 2021.
- Anticipates improvements in EBITDA during fiscal 2021.
- Projects improvements in profitability during fiscal 2021.
- Home price increases should offset potential cost increases.
- Controls virtually all lots needed for expected delivery growth next year.
Headwinds
- Broader economic uncertainties related to the COVID-19 pandemic.
- Potential cost increases in the future.
- Discounts adversely impacted gross margin in Q3 2020.
- Depends on no material changes in market conditions to achieve improvements.
- The overall demand for new homes continues to be robust due to historically low mortgage rates, a nationwide low supply of existing homes and a strong consumer desire for more indoor and outdoor space.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q3 2020
+1.0%
Avg return
Earnings day
+1.7%
Avg return
5 days after
-1.6%
Avg return
30 days after
48%
32 / 67 earnings
Positive
+53.3%
Q3 2019
Best reaction
-23.5%
Q4 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | +16.6% | +13.6% | +34.4% | |
| Q1 2026 | +3.1% | -1.6% | -13.1% | |
| Q4 2025 | -23.5% | -25.6% | -27.0% | |
| Q3 2025 | -11.9% | -5.3% | -3.4% | |
| Q2 2025 | -12.6% | -17.2% | -16.7% | |
| Q1 2025 | -12.4% | -16.3% | -12.5% | |
| Q4 2024 | -10.5% | -11.8% | -31.7% | |
| Q3 2024 | +10.0% | +6.6% | +3.5% | |
| Q2 2024 | -16.3% | -17.5% | -16.0% | |
| Q1 2024 | -12.6% | -11.4% | -11.1% | |
| Q4 2023 | +19.6% | +40.6% | +49.6% | |
| Q3 2023 | +18.4% | +24.9% | +1.3% | |
| Q2 2023 | -9.3% | -4.7% | +5.7% | |
| Q1 2023 | -1.5% | +3.6% | -3.8% | |
| Q4 2022 | -11.9% | -6.0% | -7.0% | |
| Q3 2022 | +2.7% | -2.7% | -11.0% | |
| Q2 2022 | +10.5% | +16.2% | -9.7% | |
| Q1 2022 | -4.4% | -12.3% | -38.5% | |
| Q4 2021 | +22.6% | +9.3% | +4.5% | |
| Q3 2021 | +10.1% | +7.5% | -12.2% | |
| Q2 2021 | -19.3% | -21.0% | -26.2% | |
| Q1 2021 | +48.9% | +34.4% | +97.5% | |
| Q4 2020 | -8.2% | -13.0% | -16.7% | |
| Q3 2020 | -14.7% | -16.3% | +4.8% | |
| Q2 2020 | +48.7% | +59.3% | +26.6% | |
| Q1 2020 | -13.0% | -36.6% | -75.9% | |
| Q4 2019 | +25.6% | +29.0% | -2.4% | |
| Q3 2019 | +53.3% | +84.7% | +126.9% | |
| Q2 2019 | -15.2% | -15.7% | -18.0% | |
| Q1 2019 | +7.8% | +1.7% | -11.5% | |
| Q4 2018 | +6.4% | +0.0% | -29.1% | |
| Q3 2018 | +3.2% | +10.4% | +0.0% | |
| Q2 2018 | -3.0% | +0.0% | -13.4% | |
| Q1 2018 | -6.6% | -5.3% | -18.0% | |
| Q4 2017 | +4.9% | +7.5% | -4.1% | |
| Q3 2017 | -7.0% | -6.5% | +21.0% | |
| Q2 2017 | -9.6% | -9.2% | +11.6% | |
| Q1 2017 | -9.9% | -7.9% | -9.5% | |
| Q4 2016 | +2.5% | +9.8% | +11.5% | |
| Q3 2016 | -15.2% | -16.2% | -16.2% | |
| Q2 2016 | -14.0% | -8.3% | -11.4% | |
| Q1 2016 | -16.5% | — | — | |
| Q4 2015 | +7.6% | — | — | |
| Q3 2015 | +2.6% | — | — | |
| Q2 2015 | -8.5% | — | — | |
| Q1 2015 | -0.6% | — | — | |
| Q4 2014 | +10.0% | — | — | |
| Q3 2014 | +1.9% | — | — | |
| Q2 2014 | -2.8% | — | — | |
| Q1 2014 | -14.0% | — | — | |
| Q4 2013 | +7.6% | — | — | |
| Q3 2013 | +0.8% | — | — | |
| Q2 2013 | +2.3% | — | — | |
| Q1 2013 | -2.3% | — | — | |
| Q4 2012 | -3.5% | — | — | |
| Q3 2012 | -1.9% | — | — | |
| Q2 2012 | +22.4% | — | — | |
| Q1 2011 | +16.3% | — | — | |
| Q1 2012 | +16.3% | — | — | |
| Q4 2011 | +9.2% | — | — | |
| Q2 2011 | +9.2% | — | — | |
| Q4 2009 | +9.2% | — | — | |
| Q3 2010 | -12.2% | — | — | |
| Q4 2010 | -12.2% | — | — | |
| Q3 2011 | -12.2% | — | — | |
| Q2 2010 | -13.1% | — | — | |
| Q1 2010 | +2.4% | — | — |
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