Hovnanian Enterprises (NYSE:HOV) Releases Earnings Results

Hovnanian Enterprises (NYSE:HOV) released its quarterly earnings data on Wednesday. The construction company reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.98) by $3.60, Zacks reports. Hovnanian Enterprises had a net margin of 2.14% and a return on equity of 15.33%.

Here are the key takeaways from Hovnanian Enterprises’ conference call:

• Hovnanian beat its internal guidance for the quarter — total revenue was $632 million, adjusted EBITDA was $63 million, and adjusted pre-tax income was $31 million, all coming in meaningfully above their guided ranges.
• Margins remain under pressure as incentives (mainly mortgage rate buydowns) rose to 12.6% of average sales price, contributing to a 24% year‑over‑year decline in profit despite some cost reductions and faster cycle times.
• Operational shift toward higher‑margin to‑be‑built homes — QMIs fell to 742 (down 30% YoY) while to‑be‑built sales increased to 29% and delivered ~780 bps higher margins than QMIs, helping position margins to improve as newer communities deliver.
• Financial position strengthened — liquidity of $471 million (second‑highest quarter), net debt‑to‑capital improved to 41.4% (vs. 146.2% in 2020), and recent refinancing converted most debt to unsecured, increasing financial flexibility.
• Management issued cautious near‑term guidance — Q2 revenue of $625–725 million, adjusted gross margin of 13–14%, adjusted EBITDA of $30–40 million, and adjusted pre‑tax income of breakeven to $10 million, while forecasting a rebound in the back half of fiscal 2026.

Hovnanian Enterprises Stock Performance

Shares of NYSE:HOV traded down $0.22 during trading on Wednesday, reaching $122.68. The company had a trading volume of 74,453 shares, compared to its average volume of 99,701. Hovnanian Enterprises has a fifty-two week low of $81.15 and a fifty-two week high of $162.05. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.58 and a quick ratio of 0.40. The stock’s fifty day moving average price is $115.32 and its 200 day moving average price is $125.08. The firm has a market capitalization of $729.92 million, a price-to-earnings ratio of 16.38 and a beta of 2.31.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Zacks Research upgraded Hovnanian Enterprises from a “strong sell” rating to a “hold” rating in a research note on Monday, November 10th. Weiss Ratings restated a “hold (c)” rating on shares of Hovnanian Enterprises in a report on Thursday, January 22nd. Finally, Wall Street Zen cut shares of Hovnanian Enterprises from a “hold” rating to a “sell” rating in a research report on Saturday, December 27th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $120.00.

Institutional Trading of Hovnanian Enterprises

Hedge funds have recently made changes to their positions in the company. State Street Corp grew its holdings in Hovnanian Enterprises by 8.6% during the 4th quarter. State Street Corp now owns 228,613 shares of the construction company’s stock valued at $22,299,000 after buying an additional 18,086 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Hovnanian Enterprises by 2.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 175,186 shares of the construction company’s stock valued at $17,089,000 after acquiring an additional 3,514 shares during the last quarter. GW&K Investment Management LLC boosted its stake in shares of Hovnanian Enterprises by 7.6% during the fourth quarter. GW&K Investment Management LLC now owns 121,488 shares of the construction company’s stock valued at $11,850,000 after acquiring an additional 8,571 shares during the last quarter. Geode Capital Management LLC increased its position in Hovnanian Enterprises by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 111,600 shares of the construction company’s stock worth $10,888,000 after purchasing an additional 1,057 shares in the last quarter. Finally, Towle & Co. raised its stake in Hovnanian Enterprises by 51.2% in the 4th quarter. Towle & Co. now owns 99,402 shares of the construction company’s stock valued at $9,696,000 after purchasing an additional 33,681 shares during the last quarter. Institutional investors and hedge funds own 65.40% of the company’s stock.

Hovnanian Enterprises Company Profile

Hovnanian Enterprises, Inc is a publicly traded homebuilding company primarily engaged in the acquisition, development and construction of residential properties. Headquartered in Red Bank, New Jersey, the company operates through a network of regional homebuilding divisions that design and deliver a range of housing solutions, including single-family detached homes, townhomes and condominiums. Hovnanian combines land development, architectural design and construction services with in-house mortgage and insurance offerings to provide a comprehensive homebuying experience.

The company markets its communities under several branded product lines tailored to different buyer segments and price points.