Wed, Nov. 11, 12:31 PM
- Yesterday's earnings beat and big move higher from D.R. Horton (NYSE:DHI) spread through the entire sector, and today is seeing plenty of follow-through, with DHI up another 3.2%.
- Reporting on the UBS conference today, the WSJ's Kris Hudson says Toll Brothers CEO Doug Yearly sounds coy about the upcoming spring selling period, telling attendees he's not pessimistic, but doesn't yet see an impetus pointing to a great season.
- Of supposed slowing of international buying on the West Coast: "We haven't yet personally seen any negative impact."
- ITB +1.75%, XHB +0.9%
- Hovnanian (HOV +5.6%), PulteGroup (PHM +1.3%), Lennar (LEN +2.3%), KB Home (KBH +2.5%), Beazer (BZH +5.9%)
- Previously: More on D.R. Horton's FQ4 beat (Nov. 10)
Tue, Nov. 10, 12:15 PM
- D.R. Horton is up 6.8% after cruising through FQ4 estimates, with orders, backlogs, and closings all up smartly, but prices up only modestly. Pre-tax margin gained 60 basis points to 10.7%, and the company boosted its quarterly dividend by two pennies to $0.08 per share (1% yield).
- Bears might note the beat was helped along by a $17.5M benefit from the company's DTA, but the bulls control the tape today.
- With the major averages in the red, the homebuilder ETF is up sharply, ITB +1.4%. More focused on industry suppliers, the XHB is up 0.4%.
- Toll Brothers (TOL +1.7%), PulteGroup (PHM +2.4%), Lennar (LEN +1.5%), Ryland (RYL), KB Home (KBH +2.3%), Hovnanian (HOV -0.8%).
- Previously: More on D.R. Horton's FQ4 beat (Nov. 10)
- Previously: D. R. Horton beats by $0.02, beats on revenue (Nov. 10)
Mon, Oct. 26, 10:11 AM
- The pace of new home sales tumbled to a seasonally-adjusted annualized rate of 468K in September. That's down 11.5% from August's 529K (revised down from 552K), and just 2% above the level of a year ago. Analysts had expected a 550K pace in September.
- The Northeast suffered an unusually large decline, with sales dropping to 13K from 34K ... must have been the weather. Sales in the Midwest fell to 55K from 60K; South to 274K from 300K; West to 126K from 135K.
- Maybe a bigger issue are prices: The median price of 296.9K was 13.5% higher than a year ago.
- The homebuilders aren't liking the news: Toll Brothers (TOL -2%), Lennar (LEN -1.6%), Hovnanian (HOV -1.8%), KB Home (KBH -2.2%), D.R. Horton (DHI -2.5%), PulteGroup (PHM -1.4%)
- ITB -1.6%, XHB -0.7%
- Full report
- Previously: New Home Sales hits 10-month low at 468K (Oct. 26)
Thu, Oct. 22, 12:03 PM
- The major averages are up 1.5%, and a strong existing home sales number this morning added to a beat in housing starts earlier this week, but the homebuilders are retreating.
- At work are weaker-than-hoped reports from PulteGroup (PHM -6.4%) and M/I Homes (MHO -5.7%).
- Pulte reported a decline in closings, with ASPs up just a hair vs. the 8% gain in sales prices a year ago. Home sales in Texas slumped 15%, and while net new orders for the company overall rose 8%, they fell 5% in that state.
- KB Home (KBH -4.3%), Toll Brothers (TOL -1%), Lennar (LEN -0.6%), Hovnanian (HOV +1.6%), D.R. Horton (DHI -1.2%)
- ETFs: ITB, XHB
- Previously: Sale price gains slow down at Pulte (Oct. 22)
- Previously: M/I Homes misses by $0.04, misses on revenue (Oct. 22)
Thu, Oct. 8, 8:55 AM
- The land banking agreement is with Domain Real Estate Partners, and the two companies expect to identify land parcels (owned by HOV) totaling $125M in acquisition and development costs over the next two months.
- Domain will acquire the portfolio from Hovnanian and option finished lots on a monthly takedown basis back to Hovnanian.
- The deal frees up a good bit of liquidity for the Hovnanian, while also allowing the company to essentially keep control of the land through options agreements on the finished lots.
- Source: Press release
Thu, Sep. 17, 3:49 PM
- Outperforming alongside the big dividend payers are the homebuilders after the FOMC refrained from hiking rates today, but still all but promises tighter policy before the year is out. The big gains in homebuilders are in contrast to the S&P 500 which is flat.
- The inaction has sparked a major rally in bonds across the curve, with the 10-year yield lower by ten basis points to 2.20% and the two-year yield down a full twelve basis points to 0.68%.
- Earlier today, August housing starts disappointed, and July starts were revised sharply lower.
- Previously: August housing starts disappoint; July revised sharply lower (Sept. 17)
- Toll Brothers (TOL +1.2%), Lennar (LEN +1.5%), Hovnanian (HOV +6%), PulteGroup (PHM +1.1%), Ryland (RYL +2.1%), D.R. Horton (DHI +2%), KB Home (KBH +2%)
- ETFs: ITB, XHB
Wed, Sep. 9, 9:47 AM
- FQ3 (ended July 31) net loss of $7.7M or $0.05 per share vs. income of $17.1M and $0.11 one year earlier.
- Homebuilding gross margin of 17.8% down from 21.3% a year ago.
- Net contracts including consolidated JVs of 1,658 up 16.4% Y/Y. Dollar value of $694.6M up 27.9%.
- Backlog of 3,275 homes up 12.7% Y/Y. Dollar value of $1.37B up 23.5%.
- Deliveries of 1,475 homes down 4.8% Y/Y.
- Cancellation rate of 20% down 200 basis points from last year.
- For August the number of net contracts rose 15.4% from August a year ago to 531; dollar value of $217.3M up 15.3%.
- FQ4 revenue guidance of $745M, with pretax profit of $22M. Full-year revenue of $2.7B-$3.1B, with pretax profit of $40M-$100M.
- CEO Ara Hovnanian is disappointed with FQ3, but says results are within what the company guided for.
- Conference call at 11 ET.
- Previously: Hovnanian misses by $0.04, misses on revenue (Sept. 9)
- HOV -5.9%
Wed, Sep. 9, 9:23 AM
Tue, Sep. 8, 5:30 PM
Tue, Aug. 18, 12:45 PM
Wed, Jul. 22, 10:36 AM
- In the latest data point signaling the housing recovery has shifted into another gear, the NAR earlier reported a 3.2% gain in the seasonally adjusted annualized rate of existing home sales to 5.49M in June.
- Sales are at their highest pace since February 2007 and are 9.6% above the pace of one year ago.
- The median price of $236.4K is up 6.5% Y/Y and surpasses the peak set in July 2006.
- ETFs: ITB +1.5%, XHB +1.5%
- Toll Brothers (TOL +2%), Lennar (LEN +1.7%), KB Home (KBH +1.9%), Pulte (PHM +2.1%), D.R. Horton (DHI +2.1%), Hovnanian (HOV +0.9%), Ryland (RYL +3.1%)
- Previously: Existing home sales rise to fastest pace in eight years (July 22)
Wed, Jun. 24, 9:47 AM
- Lennar is up 4.5% after blowing through estimates, including posting gross and operating margins ahead of previous guidance.
- ITB +1.3%, XHB +0.7%
- Toll Brothers (TOL +1.7%), Ryland (RYL +0.7%), KB Home (KBH +1.5%), Pulte (PHM +2%), D.R. Horton (DHI +1.7%), Hovnanian (HOV +1.5%), Beazer (BZH +1.6%).
- Previously: Lennar in high cotton in FQ2, up 4.7% post-earnings (June 24)
- Previously: Lennar beats by $0.15, beats on revenue (June 24)
Fri, Jun. 19, 10:09 AM
- KB Home CEO Jeffrey Mezger is confident of his company's ability to achieve "measurable year-over-year earnings growth in H2" after reporting new order growth of 33% in units and 38% in dollars in FQ2, and backlog growth of 39% in units and 57% in dollars.
- KB Home is up 6%, leading the ITB +1.4%, and XHB +0.8% even as the major averages slip.
- Toll Brothers (TOL +2.3%), Hovnanian (HOV +2.7%), Lennar (LEN +3%), Ryland (RYL +2%), D.R. Horton (DRI +2.5%), Pulte (PHM +2.5%)
- Previously: KB Home gains following earnings beat (June 19)
- Previously: KB Home beats by $0.02, beats on revenue (June 19)
Mon, Jun. 15, 9:44 AM
- Zigging higher while the rest of the market zags sharply lower are the homebuilders following this weekend's merger of Ryland Homes and Standard Pacific.
- While there have been a number of smaller deals over the past year, this one is more sizable, setting off hope of a broader - and necessary, according to some - consolidation in the fragmented sector.
- Lennar (LEN +1.9%), Toll Brothers (TOL +1.4%), M.D.C. Holdings (MDC +2.3%), M/I Homes (MHO -0.5%), NVR (NVR), D.R. Horton (DHI +1.5%), KB Home (KBH +0.7%), Beazer Homes (BZH +1.2%), PulteGroup (PHM +1.6%), Hovnanian (HOV flat)
- Previously: Industry eyes Ryland/Standard Pacific merger (June 15)
Wed, Jun. 10, 10:31 AM
Tue, Jun. 9, 9:28 AM
- FQ2 (ended April 30) net loss of $19.6M or $0.13 per share vs. $7.9M and $0.05 one year ago. Revenues of $468.9M up 4.2%.
- Homebuilding gross margin of 16.1% slips 410 basis points from a year ago.
- Consolidated deliveries of 1,233 homes down 1% Y/Y, Including unconsolidated JVs, deliveries of 1,289 homes down 3.2%.
- Dollar value of consolidated net contracts of $700.7M up 4.7%. The number of contracts of 1,796 slipped 0.7%. Number per selling community of 8.7 down 5.4%.
- Dollar value of backlog of $1.17B up 11.9%. Backlog number of homes of 2,972 up 6.3%.
- SG&A of $69.1M or 14.7% of total revenues up 80 bps from a year ago.
- CEO Ara Hovnanian notes disappointment with results as the impact to margins from incentives and concessions was greater than expected. He's confident that gross margin for FQ3 and FQ4 will show sequential increases.
- Earnings call at 11 ET
- Previously: Hovnanian misses by $0.08, misses on revenue (June 9)
- HOV -5% premarket
Hovnanian Enterprises Inc designs, constructs, markets and sells single-family detached homes, attached townhomes and condominiums, urban infill and active adult homes in planned residential developments.
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