NYSE$HOV

Hovnanian Enterprises Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$887M

Previous: $887M+0.0%
EPS (adj)

$13.05

Previous: $7.24+80.2%
Capital Expenditures

$5.62M

Previous: $3.99M+40.9%
Free Cash Flow

$138M

Previous: $114M+21.0%
Net Income

$97.3M

Previous: $55.6M+75.0%
Operating Income

$121M

Previous: $91.5M+32.7%
Gross Profit

$21.40

Previous: $215M-100.0%
Cash & Equivalents

$434M

No prior period
Total Assets

$3.46B

Previous: $2.56B+35.0%
Stock-Based Comp

$4.67M

Previous: $3.87M+20.7%

Revenue & EPS history

Hovnanian · Revenue · Quarterly

$887M

Q4 2023+0%vs Q4 2022
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

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2023

Historical avgQ4 2023

+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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