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Free Post Earnings Research Report: Hovnanian Reported Better Than Expected Results

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LONDON, UK / ACCESSWIRE / January 17, 2018 / Active-Investors.com has just released a free earnings report on Hovnanian Enterprises, Inc. (NYSE: HOV) ("Hovnanian"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HOV. Hovnanian reported its fourth quarter fiscal 2017 operating and financial results on January 03, 2018. The Homebuilder's Homebuilding segment's revenue and gross margin increased on a y-o-y basis. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Lennar Corporation (NYSE: LEN), which also belongs to the Industrial Goods sector as the Company Hovnanian Enterprises. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hovnanian Enterprises most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=HOV

Earnings Highlights and Summary

For its fiscal fourth quarter ended October 31, 2017, Hovnanian's total revenues decreased 10.4% to $721.7 million compared to $805.1 million in Q4 FY16. The Company's revenue number topped analysts' estimates of $594.3 million.

For the fiscal year ended October 31, 2017, the Company's total revenues decreased 10.9% to $2.45 billion compared to $2.75 billion in FY16.

During Q4 FY17, Hovnanian's Homebuilding revenues for unconsolidated joint ventures surged 52.6% to $98.1 million compared ro $64.2 million in Q4 FY16. The Company's Homebuilding gross margin percentage, after interest expense and land charges was 13.7% for the reported quarter versus 13.0% in the prior year's comparable quarter. Hovnanian' Homebuilding gross margin percentage, before interest expense and land charges, was 18.2% for Q4 FY17 compared to 17.6% in Q4 FY16.

Hovnanian's total selling, general, and administrative (SG&A) was $72.9 million, including a $12.5 million adjustment to construction defect reserves related to litigation for two closed communities, or 10.1% of total revenues, for Q4 FY17 compared to $53.7 million, or 6.7% of total revenues, in Q4 FY16. Excluding the $12.5 million adjustment to construction defect reserves, the Company's total SG&A would have been $60.4 million, or 8.4% of total revenues, for the reported quarter

For Q4 FY17, Hovnanian's Income before income taxes was $12.3 million compared to income before income taxes of $32.1 million during Q4 FY16. The Company's income before income taxes, excluding land-related charges and loss on extinguishment of debt, for the reported quarter was $20.8 million compared to $45.8 million during the year earlier same quarter.

Hovnanian's net income was $11.8 million, or $0.08 per common share, in Q4 FY17, compared to net income of $22.3 million, or $0.14 per common share, during Q4 FY16. The Company's earnings comfortably surpassed Wall Street's estimates of $0.01 per share.

For the fiscal year 2017, Hovnanian's net loss was $332.2 million, or $2.25 per common share, including the $294.0 million increase in the valuation allowance for the Company's deferred tax assets and a $34.9 million loss on extinguishment of debt, compared to a net loss of $2.8 million, or $0.02 per common share, in fiscal 2016.

Operating Results

During Q4 FY17, Hovnanian's contracts per community, including unconsolidated joint ventures, increased 16.2% to 8.6 contracts per community, compared to 7.4 contracts, including unconsolidated joint ventures, per community in Q4 FY16. The Company's consolidated contracts per community increased 10.3% to 8.6 contracts per community for the reported quarter compared to 7.8 contracts per community in the year earlier corresponding quarter.

Hovnanian's number of contracts, including unconsolidated joint ventures, for Q4 FY17 decreased 3.2% to 1,344 homes from 1,389 homes for Q4 FY16. The Company's number of consolidated contracts, during the reported quarter fell 14.4% to 1,112 homes compared to 1,299 homes in the year ago same period.

Hovnanian's dollar value of contract backlog, including unconsolidated joint ventures, as of October 31, 2017, was $1.09 billion, reflecting a decrease of 10.6% compared to $1.22 billion as of October 31, 2016. The Company's dollar value of consolidated contract backlog, as of October 31, 2017, decreased 24.4% to $808.0 million compared to $1.07 billion as of October 31, 2016.

For Q4 FY17, Hovnanian's deliveries, including unconsolidated joint ventures, decreased 9.4% to 1,787 homes compared to 1,972 homes during Q4 FY16. The Company's consolidated deliveries were 1,604 homes for the reported quarter, reflecting a 14.2% drop compared to 1,870 homes in the year earlier corresponding quarter.

Hovnanian's consolidated contract cancellation rate for Q4 FY17 was 22% compared to 20% in Q4 FY16. The Company's contract cancellation rate, including unconsolidated joint ventures, was 22% in the reported quarter compared to 21% in the year earlier same quarter.

Liquidity and Inventory

As of October 31, 2017, Hovnanian's total liquidity was $473.8 million, which includes $463.7 million of cash and cash equivalents.

Stock Performance Snapshot

January 16, 2018 - At Tuesday's closing bell, Hovnanian's stock declined 7.99%, ending the trading session at $2.65.

Volume traded for the day: 3.28 million shares, which was above the 3-month average volume of 1.94 million shares.

Stock performance in the last month – up 7.72%; previous three-month period – up 17.78%; past six-month period – up 5.58%; and previous twelve-month period – up 16.23%

After yesterday's close, Hovnanian's market cap was at $384.17 million.

The stock is part of the Industrial Goods sector, categorized under the Residential Construction industry.

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