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Mon, Jan. 25, 11:50 AM
- "Texas is in good shape," says D.R. Horton (DHI -3.5%) CEO David Auld, speaking on the earnings call (reported by Diana Olick). "We have a positive tone because we're seeing positive things out there in the market." Auld also takes note of DHI's cheaper "Express" brand, which he says is driving market share gains.
- The stock is lower despite an earnings beat, with investors perhaps focusing on slowing price gains (sales orders up 9%, dollar amount up 12%).
- Other names: Hovnanian (HOV -4.6%), Toll Brothers (TOL -3.4%), Lennar (LEN -3.4%), PulteGroup (PHM -3.1%), KB Home (KBH -3.8%).
- ETFs: ITB, XHB
Tue, Jan. 12, 11:40 AM
- The XHB's (and ITB's) roughly 10% decline during the year's first week is overdone, says Goldman, especially considering there's been little change in housing fundamentals. Plus, the risks many are worried about - the crashing oil price and China slowdown - if anything, could be a net positive for U.S. housing.
- Alas, after strong opens, the housing names are once again in the red:
- Lennar (LEN -1.4%), Hovnanian (HOV -3.2%), KB Home (KBH -3.9%), Toll Brothers (TOL -1.9%), PulteGroup (PHM -1.6%), DR. Horton (DHI -0.6%)
Dec. 16, 2015, 9:50 AM
- The seasonally-adjusted annualized rate of housing starts in November of 1.173M was up 10.5% from October and 16.5% from a year ago. Single-family starts of 768K gained 7.6% from October.
- Building permits of 1.289M gained 11% M/M and 19.5% Y/Y. SIngle-family permits of 723K gained just 1.1% from last month.
- The South was a particular area of strength, with housing starts in that region of 615K up from 507K in October. SIngle-family starts there of 409K gained from 376K.
- The major average are up modestly, but the ITB is ahead 1.5%, and XHB +1.25%.
- Individual names: Toll Brothers (TOL +1.8%), Lennar (LEN +1.7%), Pulte (PHM +1.5%), KB Home (KBH +0.9%), D.R. Horton (DHI +1.6%), Hovnanian (HOV -1.8%)
Dec. 4, 2015, 9:31 AM
- FQ4 (ended Oct. 31) $25.5M or $0.16 per share vs. $37.4M and $0.23 (excl. items) a year ago. Revenue of $693.2M down 0.7% Y/Y. Full-year revenues of $2.15B up 4.1%.
- Homebuilding gross margin of 18% down 130 basis points Y/Y.
- Net contracts of 1,629 homes up 20.7% Y/Y; dollar value of $684.3M up 28.7%.
- Backlogs of 3,112 homes up 32.9%; dollar value of $1.35B up 49%.
- Deliveries of 1,727 homes down 2%. Cancellation rate of 20% down 200 basis points.
- For November, net contracts of 517 homes vs. 422 a year ago; dollar value of $220.1M vs. $173.5M.
- Conference call at 11 ET
- Previously: Hovnanian beats by $0.07, misses on revenue (Dec. 4)
- HOV +9.9% to $1.88
Dec. 4, 2015, 9:22 AM
Dec. 3, 2015, 5:30 PM
Nov. 11, 2015, 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)
Nov. 10, 2015, 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)
Oct. 26, 2015, 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)
Oct. 22, 2015, 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)
Oct. 8, 2015, 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.
Sep. 17, 2015, 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
Sep. 9, 2015, 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%
Sep. 9, 2015, 9:23 AM
- Hovnanian (NYSE:HOV): FQ3 EPS of -$0.05 misses by $0.04.
- Revenue of $540.6M (-1.9% Y/Y) misses by $71.35M.
- Shares +1.8% PM.
Sep. 8, 2015, 5:30 PM
Aug. 18, 2015, 12:45 PM
Hovnanian Enterprises Inc designs, constructs, markets and sells single-family detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments.
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