Seeking Alpha
SA's VP content, editor in chief
Profile| Send Message|
( followers)  

Hovnanian Enterprises said it's Q2 loss would come in at $0.30/share, far worse that the company's original guidance of a $0.05-0.20 per-share loss. It said it expects a $15-20 million loss on abandoning deposits on land it would not develop, which will increase its per-share loss to $0.45-0.50. The #6 U.S. homebuilder said, "The adverse publicity surrounding the subprime market has further damaged homebuyers' psychology, resulting in decreased demand and leading to continued use of sales incentives." Hovnanian delivered 3,196 homes, down from 4,555 last year. Hovnanian 04 05 2007 ChartCancellations fell from 36% to 32% q/q. Net contracts were down 21% to 3,116. Shares gained 1.1% Thursday to $24.57; they have fallen 38.2% over the past year.

Sources: Press release, MarketWatch, Bloomberg
Commentary: Holding Onto Hovnanian, With Some TrepidationHovnanian: Housing Slump BuyHolding Onto Hovnanian, With Some Trepidation
Stocks/ETFs to watch: Hovnanian Enterprises Inc. (NYSE:HOV). Competitors: Toll Brothers Inc. (NYSE:TOL), D.R. Horton Inc. (NYSE:DHI), KB Home (NYSE:KBH), Beazer Homes USA Inc. (NYSE:BZH), Pulte Homes Inc. (NYSE:PHM). ETFs: streetTRACKS SPDR Homebuilders ETF (NYSEARCA:XHB), iShares Dow Jones US Home Construction (NYSEARCA:ITB)
Conference call transcript: Hovnanian Enterprises F1Q07 Earnings Call Transcript

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

Source: Hovnanian Says Q2 Loss Will Exceed Forecasts