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Hovnanian Enterprises Inc. (NYSE:HOV) is scheduled to report its Q3 2012 results on September 6, 2012, before the market opens. The street expects EPS and revenue of ($0.12) loss and $386.18M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from HOV and the news from its closest competitors.

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Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last two quarters. In the last quarter it reported $0.02 EPS, beating analyst estimates of ($0.32) loss.

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The consensus EPS estimate is ($0.12) loss based on 8 analysts' estimates, up from ($0.47) loss a year ago. Revenue estimates are $386.18M, up from $285.62M a year ago. The median target price by analysts for the stock is $1.75.

Average recommendation: Hold

Source: Marketwatch

Latest News

  • On June 6, 2012, Hovnanian Enterprises, Inc. reported results for its second quarter and six months ended April 30, 2012. Total revenues were $341.7 million for the second quarter of fiscal 2012 compared with $255.1 million in the second quarter of the previous year. For the first six months of fiscal 2012, total revenues were $611.3 million compared with $507.7 million during the same period of the prior year. Net income was $1.8 million during the second quarter, or $0.02 per common share, compared with an after-tax net loss of $72.7 million, or $0.69 per common share, during the second quarter of 2011. For the six months ended April 30, 2012, the after-tax net loss was $16.5 million, or $0.15 per common share, compared with an after-tax net loss of $136.8 million, or $1.49 per common share, during the same period a year ago.
  • On July 13, 2012, Hovnanian Enterprises, Inc. and GSO Capital Partners LP ("GSO"), the credit arm of The Blackstone Group (NYSE:BX), announced a land banking arrangement for up to $125 million.
  • On April 5, 2012, Hovnanian Enterprises, Inc. announced that it priced its previously announced offering of 25,000,000 shares of its Class A Common Stock at $2.00 per share, resulting in net proceeds of approximately $47 million.
  • On April 3, 2012, Hovnanian Enterprises, Inc. announced the commencement of a registered underwritten public offering of Class A Common Stock. The offering is anticipated to consist of the issuance of 25,000,000 shares of the Company's Class A Common Stock.

Competitors

DR Horton (NYSE:DHI), KB Home (NYSE:KBH), Lennar (NYSE:LEN), PulteGroup (NYSE:PHM), and Toll Brothers (NYSE:TOL) are peers for comparison for Hovnanian and the table below provides the key metrics for these companies and the industry.

Hovnanian Enterprises Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

HOV Chart

HOV data by YCharts

Competitors' Latest Development

  • On September 4, 2012, Toll Brothers Inc announced that wholly owned subsidiary Toll Brothers Finance Corp. proposes to offer in a private offering, $250 million aggregate principal amount of Exchangeable Senior Notes due 2032.
  • On August 15, 2012, DR Horton Inc announced the acquisition of the homebuilding operations of Breland Homes (Breland), which operates in Huntsville, Mobile and Baldwin County in Alabama and along the gulf coast of Mississippi.
  • On August 9, 2012, Lennar Corp announced that it has sold an additional $50 million principal amount of its 4.75% Senior Notes due 2017 (4.75% Senior Notes), bringing the total outstanding principal amount of its 4.75% Senior Notes to $400 million.
  • On August 1, 2012, DR Horton Inc announced that for fourth quarter of 2012, it expects net income to be approximately $85 million. According to I/B/E/S Estimates, analysts are expecting the Company to report net income of $79 million for fourth quarter of 2012.
  • On July 27, 2012, DR Horton Inc announced that it has declared a quarterly cash dividend of $0.0375 per share. The dividend is payable on August 24, 2012 to stockholders of record on August 13, 2012.
  • On July 19, 2012, KB Home announced that it has declared a quarterly cash dividend of $.025 per share on the Company's common stock, payable on August 16, 2012 to stockholders of record on August 2, 2012.
  • On July 18, 2012, KB Home announced that it has acquired land within the Elworthy Ranch property in the town of Danville. Development of the site will begin in the coming months, with an anticipated groundbreaking on new model homes before the end of the year.
  • On July 18, 2012, Lennar Corporation announced that it has agreed to sell $350 million principal amount of its 4.75% Senior Notes due 2017 to initial purchasers, who resold the Senior Notes to qualified institutional buyers in transactions that are exempt from the registration requirements of the Securities Act of 1933, as amended, under SEC Rule 144A.
  • On July 17, 2012, Lennar Corporation announced that it proposes to offer $300 million principal amount of a new issue of Senior Notes due 2017 in a private offering under SEC Rule 144A.
  • On June 29, 2012, KB Home announced that it expects to continue to report positive operating earnings for fiscal 2012, excluding impairment and land option contract abandonment charges.
  • On June 19, 2012, Toll Brothers, Inc. and Shea Baker Ranch LLC, a member of the Shea family of companies (Shea), announced a partnership to develop Baker Ranch, a master-planned community approved for over 2,000 new homes in Lake Forest, CA, one of south Orange County's desirable markets.
  • On April 25, 2012, D.R. Horton, Inc. announced that it intends to offer and sell, subject to market and other conditions, approximately $300 million in aggregate principal amount of senior unsecured notes in an offering registered under the Company's currently effective shelf registration statement.
  • On April 25, 2012, D.R. Horton, Inc. announced that it has priced a registered underwritten public offering of $350 million aggregate principal amount of 4.750% senior notes due 2017.
  • On April 17, 2012, The Law Firm of Levi & Korsinsky, LLP announced that it is investigating KB Home, and its Board of Directors, in connection with the compensation provided to certain executive officers.
  • On April 13, 2012, KB Home announced that it has declared a quarterly cash dividend of $0.025 per share on the Company's common stock, reflecting its decision to reduce the Company's quarterly cash dividend from $0.0625 per share.
  • On March 23, 2012, KB Home announced that it expects to have a positive operating income for fiscal 2012.

Technical Overview


The stock has a market capitalization of $327.36M and is currently trading at $3.01 with a 52 week range of $0.89 - $3.31. The stock's year-to-date performance has been 101.38%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Hovnanian Enterprises Reports On September 6