Hovnanian Shares Tumble 11% as Q3 Loss, Contract Decline Deepen Housing Woes
HOV sits 26% above its 52-week low of $91.52.
Summary
Hovnanian posted a Q3 net loss of $1.8 million, swinging from a $16.6 million profit a year ago, as revenue fell 12% to $705.7 million and contracts declined 4% to 1,359 homes. Shares dropped 11% to $113.31 in midday trading. The company guided Q4 revenue to $800-$900 million with adjusted home-building gross margin of 15%-16.5%. CEO Ara Hovnanian cited high mortgage rates, inflation, and global instability for buyer hesitation, forcing elevated incentives that cut into margins. This follows the earlier GlobeNewswire report of the Q3 loss, but adds the intraday share move, contract volume, revenue detail, and Q4 guidance.
At the time of this announcement, HOV was trading at $114.90 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $651.5M. The 52-week trading range was $91.52 to $162.06. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.