Hovnanian Enterprises, Inc. (HOV) - NYSE
  • Jan. 17, 2014, 9:49 AM
    • December housing starts of 999K fell 9.8% from November, but are up 1.6% from a year ago. SIngle family starts of 667K fell 7% from last month. For the full year, an estimated 923.4K housing units were started, up 18.2% from 2012.
    • Building permits of 986K declined 3% M/M, rose 4.6% Y/Y. For the full year, an estimated 974K units were authorized, up 17.5% from 2012.
    • Full report
    • XHB -0.75%, ITB -0.8%.
    • Builders: Toll Bros. (TOL -1.1%), Lennar (LEN -1.6%), Hovnanian (HOV -1.1%), Ryland (RYL -1.6%), D.R. Horton (DHI -1.1%), Pulte (PHM -1.4%), KB Home (KBH -0.9%).
    | Jan. 17, 2014, 9:49 AM | 1 Comment
  • Jan. 16, 2014, 3:32 AM
    • The number of foreclosure filings dropped to the lowest level since 2007 last year, declining 26% to 1.36M properties, RealtyTrac says. The figure is less than half of the peak of 2.9M properties in 2010.
    • States with the highest foreclosure rates in 2013 were Florida, Nevada, Illinois, Maryland and Ohio.
    • The number of foreclosure processes started plunged 33% to 747,728, the lowest since RealtyTrac began tracking the data in 2006. Bank repossessions plummeted 31% to 462,970 properties, the least since 2007. (PR)
    • Relevant tickers: PHM, MHO, TOL, KBH, RYL, HOV, SPF, FNMA, FMCC
    • ETFs: ITB, XHB, MBB, MBG, VMBS, CMBS, COBO
    | Jan. 16, 2014, 3:32 AM | 1 Comment
  • Jan. 6, 2014, 4:21 PM
    • The $150M of senior notes due in 2019 from subsidiary K. Hovnanian Enterprises will be sold in a private placement. In addition to acquiring/developing more land, funds will be used to pay off the company's 6.25% notes due in 2015.
    • HOV +0.2% AH
    | Jan. 6, 2014, 4:21 PM
  • Dec. 23, 2013, 2:22 PM
    • Homebuilders and private mortgage insurers are partying thanks to incoming FHFA chief Mel Watts' weekend move to postpone an increase in fees which would have raised significantly raised mortgage costs for those with good, but not stellar credit and less than 20% to put down.
    • "This is a victory for the housing finance industry," says FBR's Edward Mills. "We believe that this is the first of a series of decisions by incoming Director Watt to preserve/expand mortgage credit availability ... We view this announcement as positive for housing generally, but specifically for private mortgage insurers, originators, and homebuilders."
    • Homebuilder ETFs: XHB +2%, ITB +2.8%.
    • Homebuilder names: Toll Brothers (TOL +3.9%), Putle (PHM +5%), Lennar (LEN +3.2%), KB Home (KBH +6.9%), Hovnanian (HOV +4.8%), D.R. Horton (DHI +2.8%), Standard Pacific (SPF +4%).
    • Mortgage insurers: Radian (RDN +4.1%), MGIC (MTG +1.1%), Genworth (GNW +1.6%), Old Republic (ORI +0.7%), NMI Holdings (NMIH +1.1%). Essent Group (ESNT -0.6%) is off a hair, but up 29% since its late-October IPO.
    • Not showing much reaction today, but potentially set up to disappoint if the GSEs do not allow any private oxygen in mortgage finance are Redwood Trust (RWT -0.2%) and PennyMac Financial (PFSI +1.2%).
    | Dec. 23, 2013, 2:22 PM | 3 Comments
  • Dec. 12, 2013, 9:26 AM
    • FQ4 gross margin of 22.6% is up from 18.3% a year ago and 20.3% in FQ3.
    • Deliveries of 1,816 homes up 3.8% Y/Y. Dollar value of net contracts of $490.5M, off about 4%. Number of net contracts of 1,315, off 8.9%.
    • Backlog of 2,392 homes and $848.4M is up 11.5% and 14.3%, respectively, from a year ago. Contract cancellation rate of 23% is flat from last year.
    • Noting slowing sales from July-September, CEO Ara Hovnanian says sales improved back to prior-year levels in October (the last month of the Q) and exceeded last year's levels in November.
    • CC at 11 ET.
    • HOV +4.6% premarket
    | Dec. 12, 2013, 9:26 AM
  • Dec. 12, 2013, 9:18 AM
    • Hovnanian (HOV): FQ4 EPS of $0.21.
    • Revenue of $591.7M (+21.5% Y/Y) beats by $8.81M. (PR)
    | Dec. 12, 2013, 9:18 AM
  • Dec. 12, 2013, 12:05 AM
  • Dec. 11, 2013, 5:30 PM
  • Dec. 11, 2013, 2:59 PM
    • The two worst-performing sectors on a down day are industrials (XLI -1.4%) and homebuilders (XHB -1.5%), (ITB -1.9%).
    • Industrials are taking a hit after Joy Global (JOY -6.3%) missed earnings estimates and provided disappointing guidance. "With a limited number of projects that can book in time to help 2014, we continue to see both the need and opportunity to lower the cost base in our business," says the company. Caterpillar (CAT -1.2%).
    • Homebuilders continue to digest Toll Brothers' (TOL -1.8%"leveling in demand" comments from yesterday's earnings results - in the 19 weeks since August 1, business has been flat vs. last year, and in the first 5 weeks of FQ1 (beginning Nov. 1) business has also been flat from 2012 (though Hurricane Sandy makes a tricky comparison).
    • CEO Doug Yearley on the earnings call (transcript): "There's just not a lot of action [this time of year]. We still feel like pent-up demand is building, demographics are on our side, affordability is in place, and we are cautiously optimistic about the spring season, which begins the end of January."
    • Lennar (LEN -2.3%), D. R. Horton (DHI -3%), KB Home (KBH -3.1%), Hovnanian (HOV -3.3%)
    | Dec. 11, 2013, 2:59 PM | 1 Comment
  • Nov. 26, 2013, 9:34 AM
    • Homebuilders have their tails in the air following this morning's housing starts report which beat expectations and also included a big building permits print - up 6.2% from September and 13.9% from a year ago.
    • Full report
    • ETF: XHB +0.7%, ITB +0.7%.
    • Toll Bros. (TOL +1%), Pulte (PHM +1.1%), Hovnanian (HOV +1%), D.R. Horton (DHI +1.3%), Lennar (LEN -0.7%)
    | Nov. 26, 2013, 9:34 AM | 2 Comments
  • Oct. 24, 2013, 3:47 PM
    • With interest rates already sharply lower than during Q3, investors look past the slowdown in new home orders last quarter at PulteGroup (PHM +7.6%) . Also reporting today, M/I Homes (MHO +7.6%) records a similar gain after new contracts of 869 homes gained 15% from a year ago.
    • Not unnoticed is the average 30-year fixed mortgage rate falling 15 bps last week to a 4-month low of 4.13%.
    • Other builders: Toll Brothers (TOL +2.5%), KB Home (KBH +2.9%), Ryland RYL, Hovnanian (HOV +2.5%), Standard Pacific (SPF +2.5%).
    • ETFs: ITB +3.1%,  XHB +2.4%.
    | Oct. 24, 2013, 3:47 PM
  • Oct. 14, 2013, 11:35 AM
    • The average mortgage payment on a median-priced U.S. home as a share of income rose to 16% in August, according to the NAR. It's all about interest rates, as the rise occurred even as median prices slipped slightly this summer.
    • Still - by this measure - homes are still more affordable than at any time between 1989 and 2008.
    • The homebuilding sector is among the worst-performing today amid this news and word of rising incentives (lower profit margins) now necessary to move product.
    • ETFs: ITB -1.9%, XHB -1.6%.
    • TOL -2.1%, RYL -3.1%, HOV -1.4%, WLH -3.5%, PHM -2.9%.
    | Oct. 14, 2013, 11:35 AM | 2 Comments
  • Sep. 24, 2013, 11:40 AM
    • The Dow Jones U.S. Home Construction ETF (ITB +2.6%) gains following earnings reports from Lennar (LEN +5%) and KB Home (KBH +4.5%) - both of which showed interest rate hikes taking at least some bite out of results. Also, Case-Shiller data pointed to a slight slowing in home price increases. Homebuilders have been knocked for a loop since rates started going up in May - perhaps some sell the rumor, buy the news action is warranted today.
    • In other homebuilder news, RBC Capital initiates coverage on Brookfield Residential Properties (BRP +4.1%) with a Buy and $27 price target.
    • Toll Brothers (TOL +3.7%), M/I Homes (MHO +3.9%), Ryland (RYL +6%), D.R. Horton (DHI +2.2%), Hovnanian (HOV +2.1%).
    • Other ETFs: XHB, PKB.
    | Sep. 24, 2013, 11:40 AM | 1 Comment
  • Sep. 18, 2013, 5:52 PM
    • Home builders enjoyed a double boost today from the Fed's decision to maintain QE and keep interest rates low plus a report of resilient construction of single-family homes in August, but the Fed’s action simply kicks the can on a reduction of the bond-buying program and a subsequent increase in rates.
    • ISI Group thinks the move doesn’t bode well in the long term for home builders: "It speaks of prolonged economic weakness that ultimately may negatively affect the builders if job growth continues its puny pace."
    • But investors today were enjoying the short term, hoping a halt or slight reversal in the rise in rates will help spark home sales: BZH +4.4%, CVCO +4.8%, DHI +6.9%, HOV +5.3%, KBH +8.2%, LEN +6.5%, MDC +5.2%, MHO +5%, MTH +6.8%, NVR +3.9%, PHM +5.4%, RYL +8.7%, SPF +4.4%, TOL +5.1%.
    • ETFs: XHB, ITB, PKB.
    | Sep. 18, 2013, 5:52 PM
  • Sep. 13, 2013, 3:07 PM
    • The builder reported "mediocre" Q3 numbers on Monday, writes analyst Joel Locker. Gross margins looked good, but SG&A expenses didn't. Home orders rose just 4.8%, missing both Street and Locker's forecasts, and August looks even worse, declining 9.3% Y/Y.
    • Without substantial revenue growth in 2015, SG&A expenses as a percentage of total revenue won't improve a whole lot. Debt is a burden as well, with interest payments expected at 6.4% of projected fiscal 2014 revenue.
    • Finally, there's valuation. Homebuilders typically don't trade above book value by much thanks to the cyclical nature of the industry, yet Hovnanian (HOV +0.4%) does even as spiking mortgage rates are causing a slowdown in new-home demand.
    | Sep. 13, 2013, 3:07 PM
  • Sep. 9, 2013, 11:48 AM
    • Hovnanian Enterprises (HOV +2.2%) move higher today, despite missing consensus estimates on its FQ3 earnings report.
    • Net earnings fell 76% Y/Y as improving sales and margins were overshadowed by a year-earlier period that included a combined $42.7M in tax benefits and debt-extinguishment gains.
    • Looking forward, the company says it sees solid profitability, with the combination of pent-up housing demand and positive long-term demographic trends for housing driving increased demand for new homes.
    • On its call, HOV says the vast majority of its tax valuation allowance could potentially be used at end of FY14, adding that it has has no near term plan for any stock offering.
    | Sep. 9, 2013, 11:48 AM
Company Description
Hovnanian Enterprises, Inc. is a homebuilding company, which designs, constructs, markets and sells single-family homes attached townhomes and condominiums, urban infill and active adult homes in planned residential developments. It consists of two distinct operations: Homebuilding and Financial... More
Industry: Residential Construction
Country: United States