Overview

* Hovnanian ( HOV ) Q3 fiscal revenue rises 10.8% to $800.6 mln, meeting estimates

* Net income for fiscal Q3 falls to $16.6 mln from $72.9 mln a year ago

* 86% of total lots are optioned, highest percentage ever achieved

Outlook

* Company expects Q4 revenue between $750 mln and $850 mln

* Hovnanian ( HOV ) sees Q4 adjusted homebuilding gross margin at 15%-16.5%

* Company anticipates Q4 adjusted EBITDA between $77 mln and $87 mln

* Hovnanian ( HOV ) projects Q4 adjusted income before taxes of $45 mln-$55 mln

Result Drivers

* REVENUE INCREASE - Total revenues rose 10.8% to $800.6 mln in Q3, driven by a 9.3% increase in domestic unconsolidated joint ventures' home sales revenues to $165.0 mln

* GROSS MARGIN DECLINE - Homebuilding gross margin percentage, after cost of sales interest expense and land charges, decreased to 11.7% from 19.1% a year ago, with a noted increase in land charges from 0.1% to 2.1%

* CONTRACTS GROWTH - Consolidated contracts in Q3 increased 1.6% to 1,211 homes, while contracts including domestic unconsolidated joint ventures rose 1.4% to 1,416 homes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $800.58 $801.20

Revenue mln mln (1

Analyst)

Q3 EPS $2.14

Q3 Net $16.62

Income mln

Q3 $23.80

Pretax mln

Profit

Analyst Coverage

* The one available analyst rating on the shares is "hold"

* The average consensus recommendation for the homebuilding peer group is "hold"

* Wall Street's median 12-month price target for Hovnanian Enterprises Inc ( HOV ) is $120.00, about 24.1% below its August 20 closing price of $148.95

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)