Hovnanian Enterprises Clocks 9% Revenue Growth In Q4 Aided By Past Deliveries; Demand Remains Dismal

Homebuilder Hovnanian Enterprises Inc HOV reported fourth-quarter FY22 revenue growth of 8.9% year-on-year to $886.8 million.
Homebuilding gross margin percentage, after the cost of sales interest expense and land charges, expanded 20 basis points to 19.6%.
Costs and expenses rose 9% Y/Y to $800.4 million. Adjusted EBITDA of $144.4 million increased by 19.4%.
EPS for the quarter was $7.24 versus $7.41 a year earlier.
The company held $339.6 million in cash and equivalents.
"Our strong performance in fiscal 2022 was partially the result of deliveries which were contracted during a time when demand for new homes was much stronger than it is today," stated Ara K. Hovnanian, Chairman and CEO. "The current level of demand for new homes is significantly lower and continues to be burdened by high levels of inflation, a sharp increase in mortgage rates, and concerns about an economic recession."
Price Action: HOV shares are trading higher by 0.95% at $48.60 on the last check Thursday.

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