Fri, May 31, 8:05 PM (143 days ago)
Hovnanian Enterprises, Inc.'s Q2 2024 financial results show a mixed performance. Revenue increased marginally by 0.7% to $708.4 million, primarily driven by a 2.4% rise in home sales revenue, offset by a significant 77.2% drop in land sales. Home deliveries grew by 4.7%, but the average sales price fell by 2.2%. Gross margin improved to 19.5% from 17.8% YoY due to reduced construction costs. Selling, general, and administrative expenses decreased by $4 million, reflecting efficiency gains. Net income rose to $50.8 million from $34.1 million, with earnings per share increasing to $7.12 from $4.68. Contract backlog decreased by 14.7% in dollar value, driven by fewer active selling communities and improved backlog conversion. The company maintained liquidity of $310.7 million, including $182.0 million in cash. Debt repayments and investments in land and joint ventures were notable cash outflows. Future performance remains uncertain due to inflation, potential recession, and interest rate volatility, although demand for new homes is bolstered by low existing home inventories.