NYSE$HOV

Hovnanian Enterprises Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported increased gross margin and pretax income for Q4 2020.

Hovnanian Enterprises reported a decrease in total revenues for the fourth quarter of fiscal 2020, but an increase in homebuilding gross margin percentage and income before income taxes. The company's consolidated backlog dollars increased significantly, and consolidated contracts per community also improved.

  • Total revenues decreased by 4.2% to $683.4 million in Q4 2020.
  • Homebuilding gross margin percentage increased 290 basis points to 17.4%.
  • Consolidated contracts per community improved 73.7% year-over-year to 16.5 contracts per community.
  • The dollar value of consolidated contract backlog increased 61.3% to $1.42 billion.

Headline financials

Total Revenue

$683M

Previous: $714M-4.2%
EPS (adj)

$5.54

Previous: $6.79-18.4%
Cancellation rate

18.0%

Previous: 21.0%-14.3%
Land spending

$229M

Previous: $163M+40.8%
Capital Expenditures

$732K

Previous: $867K-15.6%
Free Cash Flow

$99.3M

Previous: $8.06M+1130.9%
Net Income

$40.6M

Previous: -$1.81M+2346.8%
Operating Income

$42.4M

No prior period
Gross Profit

$138M

Previous: $110M+25.0%
Cash & Equivalents

$263M

No prior period
Total Assets

$2.57B

Previous: $1.88B+36.8%
Stock-Based Comp

$2.78M

Previous: $524K+430.3%

Revenue & EPS history

Hovnanian · Revenue · Quarterly

$683M

Q4 2020-4.2%vs Q4 2019
Beat estimate in 11 of 13 quarters(85%)
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

Hovnanian expects revenue between $2.5 and $2.7 billion for fiscal year 2021.

Tailwinds

  • Expects to grow revenues to between $2.5 and $2.7 billion
  • Anticipates achieving more operating efficiencies
  • Expects to further improve profitability
  • Controls all the lots needed to meet growth expectations in fiscal 2021
  • Controls almost 90% of the lots needed to meet delivery objectives for fiscal 2022

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 Q4 2020

Historical avgQ4 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

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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