What is Hovnanian Enterprises's latest dividend and current dividend yield?

What were the key takeaways from Hovnanian Enterprises's earnings call?

What factors drove the changes in Hovnanian Enterprises's revenue and profit?

What guidance did Hovnanian Enterprises's management provide for the next earnings period?

What is the market's earnings forecast for Hovnanian Enterprises next quarter?

What does Hovnanian Enterprises do and what are its main business segments?

What is the revenue and EPS growth rate for Hovnanian Enterprises year over year?

What were the key takeaways from Hovnanian Enterprises’s earnings call?

- **Revenue Performance**: Q3 revenue of $801M met guidance, with 11% YoY growth driven by deliveries. Gross margin of 17.3% reflected 11.6% incentives (up 390bps YoY).
- **QMI Dominance**: 79% of sales were QMIs, enabling 84% backlog conversion but challenging forward visibility.
- **Land Strategy**: Added 3,500 high-margin lots while walking away from 6,500 low-margin parcels. 86% of 43,343 controlled lots are under option.
- **Balance Sheet Health**: Reduced debt by $769M since FY20, with net debt to cap ratio at 47.9%. Q4 pretax guidance of $45-55M includes $30M+ JV gain.
- **Market Resilience**: 21% of communities saw price increases, concentrated in Northeast/Mid-Atlantic, despite 75% buyer reliance on mortgage buydowns.

**【CEO Summary Section】**
- **Revenue and Guidance**: Q3 revenue of $801 million met the midpoint of guidance. Adjusted gross margin was 17.3%, slightly below midpoint, due to 11.6% incentives (up 390bps YoY). SG&A ratio improved to 11.3%.
- **Sales Performance**: Contracts increased 1% YoY, with July seeing a 7% MoM rise. Contracts per community (9.8) were above the 2008-2025 average of 9.1 but below pre-2008 levels.
- **Quick Move-In (QMI) Strategy**: 79% of sales were QMIs, with 323 finished units. 34% of homes delivered were contracted in the same quarter, driving an 84% backlog conversion rate (vs. 55% historical average).
- **Market Dynamics**: 21% of communities saw price increases, concentrated in Northeast/Mid-Atlantic. Mortgage buydowns remain critical for affordability, with 75% of buyers utilizing them.

**【CFO Financial Commentary】**
- **Land Position**: Controlled 43,343 lots (7-year supply), with 86% under option. Added 3,500 lots in Q3, while walking away from 6,500 low-margin lots in the last two quarters.
- **Liquidity and Debt**: Ended Q3 with $278 million liquidity. Reduced debt by $769 million since FY20, with net debt to cap ratio at 47.9% (vs. 146.2% in FY20).
- **Guidance for Q4**: Revenue $750-850M, adjusted gross margin 15-16.5%, pretax income $45-55M (includes $30M+ JV consolidation gain). SG&A expected to remain elevated due to community growth hiring.
- **Balance Sheet Strength**: $221M deferred tax assets provide tax-free earnings on $700M of future pretax income.

**【Q&A Key Highlights】**
- **July Sales Improvement**: Driven by macro factors (tariff noise subsiding) rather than company-specific actions. August activity remained choppy.
- **Gross Margin Outlook**: Headwinds from older, lower-margin lots expected to persist, but new land acquisitions (1,000 homes in Q3) have strong margins despite incentives.
- **Debt Restructuring**: Exploring secured-to-unsecured debt conversions amid improving high-yield market conditions.
- **Market Resilience**: Northeast/Mid-Atlantic markets outperformed, with price increases in 71% of communities in these regions.

Hovnanian Enterprises, Inc. (HOV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HOV

HOV fundamentals

You can ask Aime