NYSE$HOV

Hovnanian Enterprises Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Hovnanian Enterprises reported strong third quarter results with increased revenues and income before income taxes.

Hovnanian Enterprises reported an 11% increase in total revenues and a 38% increase in income before income taxes for the third quarter of fiscal year 2024. The company also saw a 24% growth in consolidated community count and a 34% increase in total consolidated lots controlled. The midpoint of full year adjusted income before income tax guidance was increased by 11% to $313 million.

  • Total revenues increased by 11.2% to $722.7 million.
  • Income before income taxes increased by 38.2% to $97.3 million.
  • Consolidated community count increased by 23.5% to 126 communities.
  • Total consolidated lots controlled increased by 34.0% to 39,516 lots.

Headline financials

Total Revenue

$723M

Previous: $650M+11.2%
EPS (adj)

$9.75

Previous: $7.38+32.1%
Capital Expenditures

-$13.4M

Previous: -$13.2M-1.8%
Free Cash Flow

-$106M

Previous: $278M-137.9%
Net Income

$72.9M

Previous: $55.8M+30.8%
Operating Income

$754M

Previous: $661M+14.1%
Gross Profit

$723M

Previous: $650M+11.2%
Cash & Equivalents

$15.5M

Previous: $11.1M+39.6%
Total Assets

$2.54B

Previous: $2.39B+6.1%
Stock-Based Comp

$9.19M

Previous: $5.32M+72.8%

Revenue & EPS history

Hovnanian · Revenue · Quarterly

$723M

Q3 2024+11.2%vs Q3 2023
Beat estimate in 8 of 11 quarters(73%)
ActualEstimate

Revenue by segment

Hovnanian · $668M total across 3 segments · Q2 2026

  • Sale of homes
    $604M
  • Land sales and other
    $40.1M
  • Financial services
    $23.4M

Forward guidance

The Company is increasing guidance for total revenues, adjusted income before income taxes, adjusted EBITDA, fully diluted earnings per share and common book value per share for the full fiscal year.

Tailwinds

  • Total revenues are expected to be between $2.90 billion and $3.05 billion.
  • Adjusted homebuilding gross margin is expected to be between 21.5% and 22.5%.
  • Adjusted income before income taxes is expected to be between $300 million and $325 million.
  • Adjusted EBITDA is expected to be between $420 million and $445 million.
  • Fully diluted earnings per share is expected to be between $29 and $31.

Headwinds

  • Guidance assumes no adverse changes in current market conditions.
  • Guidance excludes further deterioration in the supply chain.
  • Guidance excludes material increases in mortgage rates.
  • Guidance excludes increases in inflation or cancellation rates.
  • Guidance excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $209.89 on July 31, 2024.

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 2024

Historical avgQ3 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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