Hovnanian Enterprises announced Monday that its "Deal of the Century" three-day sales promotion led to 2,100 home sales, beating their own expectations. The sales included about 1,700 contracts and about 400 sales deposits. CEO Ara Hovnanian: "The high level of traffic we saw in our sales offices and models over the weekend and over the past several weeks convinces us that there are interested buyers in the market today." Vicki Bryan, senior analyst at Gimme Credit noted, "Even if one third of those sales cancel, in line with industry and Hovnanian trends over the past couple of quarters, Hovnanian may be on track in just one weekend to meet 39% of its fiscal fourth quarter estimate of 3,600 homes sold, and there are six weeks left in the quarter." In New Jersey and New York, buyers saved up to $149,600. Analysts were watching the outcome of the event, wondering if announced price specials are what it will take to bring nervous buyers out. Hovnanian shares rose 3.0% to $11.33 on Monday, and are up 13.0% over the last two days of trading.
Sources: Press Release, Bloomberg, Wall Street Journal
Commentary: Hovnanian Posts Fourth Loss in a Row, Meets Expectations • Hovnanian Enterprises: 'The Housing Market Has Bottomed'
Stocks/ETFs to watch:HOV. Competitors: DHI, LEN. ETFs: XHB, ITB
Earnings call transcript: Hovnanian Enterprises F3Q07 (Qtr End 7/31/07)
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