Tags: Hovnanian Misses Estimates on Housing Woes

Hovnanian Misses Estimates on Housing Woes

Wednesday, 22 Dec 2010 09:56 AM

Hovnanian Enterprises Inc. reported a much wider-than-expected quarterly loss as the sixth-largest U.S. homebuilder grappled with soft demand amid higher unemployment and weakness in the housing markets.

The news came a month after top U.S. homebuilder DR Horton Inc said 2011 would be another tough year, with no hope for a boost from the spring selling season. Hovnanian shares fell 2.5 percent to $4.25 in after-market hours.

"The current housing market remains quite challenging," Chief Executive Ara Hovnanian said. "The combination of a lackluster job market and high foreclosure activity is clearly having a dampening effect on the housing market."

For the fourth quarter ending Oct. 31, net loss was $132.1 million, or $1.68 a share, compared with a net loss of $250.8 million, or $3.21 a share, a year earlier.

Analysts on average were expecting a loss of 66 cents a share, according to Thomson Reuters I/B/E/S.

Total revenue slumped 19.2 percent to $353 million, missing the analysts' average estimate of $437.4 million.

New contracts, excluding unconsolidated joint ventures, fell 13 percent to 1,078 homes in a sign that demand will probably not pick up in the near term.

Based in Red Bank, New Jersey, Hovnanian builds single-family detached homes, townhouses and condominiums in 18 states, from California to Maryland.

Homebuilder confidence remains at historic lows, according to the National Association of Home Builders/Wells Fargo Housing Market Index, which put it at 16 in December.

A reading above 50 indicates more builders view sales conditions as good than poor. The index has not been above 50 since April 2006.

© 2017 Thomson/Reuters. All rights reserved.

 
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Hovnanian Enterprises Inc. reported a much wider-than-expected quarterly loss as the sixth-largest U.S. homebuilder grappled with soft demand amid higher unemployment and weakness in the housing markets. The news came a month after top U.S. homebuilder DR Horton Inc said...
Hovnanian Misses Estimates on Housing Woes
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2010-56-22
Wednesday, 22 Dec 2010 09:56 AM
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