NYSE$HOV

Hovnanian Enterprises Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Hovnanian reported an increase in total revenues and net income for the fourth quarter of fiscal year 2021.

Hovnanian Enterprises reported a 19.2% increase in total revenues to $814.3 million for the fourth quarter of fiscal 2021, compared to $683.4 million in the same quarter of the prior year. Net income for the quarter was $52.5 million, or $7.41 per diluted common share, compared to $40.6 million, or $5.54 per diluted common share, in the fourth quarter of the previous fiscal year. The company's income before income taxes for the quarter was $77.4 million, up 82.5% compared to $42.4 million in the fourth quarter of the prior fiscal year.

  • Total revenues increased by 19.2% to $814.3 million.
  • Homebuilding gross margin percentage increased by 200 basis points to 19.4%.
  • Income before income taxes increased by 82.5% to $77.4 million.
  • Net income was $52.5 million, or $7.41 per diluted common share.

Headline financials

Total Revenue

$814M

Previous: $683M+19.2%
EPS (adj)

$7.41

Previous: $5.54+33.8%
Cancellation rate

15.0%

Previous: 18.0%-16.7%
Homebuilding gross margin %

19.4%

No prior period
Capital Expenditures

$2.05M

Previous: $732K+180.5%
Free Cash Flow

$126M

Previous: $99.3M+26.8%
Net Income

$52.5M

Previous: $40.6M+29.3%
Operating Income

$77.4M

Previous: $42.4M+82.5%
Gross Profit

$165M

Previous: $138M+19.3%
Total Assets

$2.32B

Previous: $2.57B-9.9%
Stock-Based Comp

$2.36M

Previous: $2.78M-15.1%

Revenue & EPS history

Hovnanian · Revenue · Quarterly

$814M

Q4 2021+19.2%vs Q4 2020
Beat estimate in 8 of 9 quarters(89%)
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

For the first quarter of fiscal 2022, Hovnanian Enterprises expects total revenues to be between $640 million and $670 million. Gross margin, before cost of sales interest expense and land charges, is expected to be between 20.5% and 22.0%, and adjusted pretax income is expected to be between $30 million and $35 million.

Tailwinds

  • Total revenues are expected to be between $640 million and $670 million for Q1 2022.
  • Gross margin, before cost of sales interest expense and land charges, is expected to be between 20.5% and 22.0% for Q1 2022.
  • Adjusted pretax income is expected to be between $30 million and $35 million for Q1 2022.
  • Total revenues are expected to be between $2.80 billion and $3.00 billion for fiscal year 2022.
  • Fully diluted earnings per share is expected to be between $26.50 and $32.00 for fiscal year 2022.

Headwinds

  • Financial guidance assumes no adverse changes in current market conditions, including further deterioration in the supply chain.
  • Financial guidance excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $84.26 at October 29, 2021.
  • The company cannot provide a reconciliation between its non-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts.
  • These items include, but are not limited to, land-related charges, inventory impairment loss and land option write-offs and loss (gain) on extinguishment of debt.
  • These items are uncertain, depend on various factors and could have a material impact on GAAP reported results.

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 2021

Historical avgQ4 2021

+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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