Wed, Jan. 7, 11:04 AM
- Bloomberg is reporting the president as set to announce a 50 basis point reduction in FHA fees to 0.85% at an event in Phoenix tomorrow. The news isn't good for private mortgage insurers who have been happily raking in market share gains at the expense of the government agency, but the homebuilders are a different story.
- Previously: Mortgage insurers tumble on report of cut in FHA premiums (Jan. 7)
- ETFs: ITB +3%, XHB +2.5%
- Toll Brothers (TOL +2.7%), Lennar (LEN +3.8%), D.R. Horton (DHI +4%), Ryland (RYL +2.9%), KB Home (KBH +2.5%), Hovnanian (HOV +3.6%), PulteGroup (PHM +3.9%).
Dec. 12, 2014, 8:10 AM| Dec. 12, 2014, 8:10 AM | 2 Comments
Dec. 11, 2014, 5:35 PM
Dec. 10, 2014, 3:53 PM
- "Why 2014 was a pause and flat to 2013 and not improving has been a bit puzzling," says Toll Brothers (TOL -7.6%) management on the earnings call.
- Asked about the impact of tumbling energy prices on markets like Dallas and Houston, management says the company's exposure there is small, with Houston accounting for 3.7% of signed contracts.
- Overall, Toll expects the housing recovery to be "bumpy," and that demand will truly return when buyers no longer fear price drops.
- Previously: Toll Brothers slips on FQ4 miss (Dec. 10, 2014)
- It's a different story (at least for the stock price) with Hovanian (HOV +5.9%) after its earning report today. Management: "It's an understatement to say that the past 12 months have been choppy ... Given the gains we've seen in employment, we would have expected stronger home sales."
- Previously: Hovnanian pops as fiscal 2015 starts off strong (Dec. 10, 2014)
- Other builders today: Ryland (RYL -5.1%), Lennar (LEN -5.3%), Beazer (BZH -5.1%), Pulte (PHM -3.5%), KB Home (KBH -5.1%).
- ETFs: ITB -3.4%, XHB -2.5%
Dec. 10, 2014, 9:29 AM
- FQ4 deliveries of 1,916 homes up 5.5% year-over-year.
- Dollar value of consolidated net contracts of $511.8M up 15.4%. Number of net contracts of 1,301 up 7.9%.
- Dollar value of consolidated backlog of $855.8M up 12.3%, Number of homes in backlog of 2,229 up 2.9%.
- Homebuilding gross margin of 19.3% vs. 22.6% one year ago.
- FQ4 ended on October 31, and in November, dollar value of consolidated net contracts of $167.3M gained 25.3% from a year ago; net contracts of 408 up 18.3%.
- CEO Ara Hovnanian: "2014 has been a disappointing year ... We began fiscal 2015 on a much better note."
- Conference call at 11 ET
- Previously: Hovnanian EPS of $1.95
- HOV +5.1%
Dec. 10, 2014, 9:26 AM
Dec. 9, 2014, 5:30 PM
Nov. 10, 2014, 10:08 AM
- Releasing preliminary FQ4 results ahead of a conference presentation, Toll Brothers reported sizable year-over-year sales gains both in terms of units and dollars. The ASP of homes delivered of $747K was up 6.3% from a year ago. The ASP of signed contracts in FQ4 of $757K was up 5%.
- PulteGroup (PHM +2.6%) is also benefitting from an upgrade to Buy at BofA. Others: Lennar (LEN +2.7%), D.R. Horton (DHI +2.1%), Ryland (RYL +3.1%), Hovnanian (HOV +3.4%), KB Home (KBH +3.1%).
- ETFs: ITB, XHB
Oct. 22, 2014, 10:27 AM
Oct. 13, 2014, 8:11 AM| Oct. 13, 2014, 8:11 AM | Comment!
Oct. 10, 2014, 9:46 AM
- The upgrades look like valuation calls, with Hovnanian (HOV +2.9%) - down 46% YTD - boosted to Sector Perform from Underperform, and Pulte Group (PHM -1.2%) getting the same treatment after falling 13%.
- The favorite of the group is KB Home (KBH -0.3%) which is boosted to Outperform from Sector Perform after a 20% YTD decline.
Sep. 17, 2014, 10:04 AM
- Lennar's sizable earnings beat included a 23% gain in new orders - a strong result given the slowdown seen from some other builders.
- Previously: Lennar up 4.3% after reporting big quarter
- ETFs: ITB +2.6%, XHB +1.8%
- Individual players: Ryland (RYL +4.8%) Pulte (PHM +3.8%), Toll Bros. (TOL +3.2%), D.R. Horton (DHI +4%), Hovnanian (HOV +5.8%), KB Home (KBH +4.4%), Comstock (CHCI +4.2%), Standard Pacific (SPF +3.8%).
Sep. 4, 2014, 9:48 AM
- Net income of $17.1M, or $0.11 per share vs. $8.5M, or $0.06 per share in the prior year's third quarter.
- Deliveries, including unconsolidated joint ventures increased 3.1% to 1,549 homes vs. 1,502 in the fiscal 2013 third quarter.
- Consolidated active selling communities increased 5.4% to 196 communities vs. 186 at July 31, 2013.
- Consolidated net contracts decreased 6.3% to 1,357 homes vs. 1,448 homes in last year's third quarter.
- FQ3 results
Sep. 4, 2014, 9:19 AM
Sep. 3, 2014, 5:30 PM
Sep. 3, 2014, 10:16 AM
- The homebuilders are lower in early action following Toll Brothers beating earnings estimates, but expressing caution on pricing power, and cutting guidance for full-year home deliveries.
- ITB -0.8%, XHB -0.5%.
- Individual names: Hovnanian (HOV -0.9%), Lennar (LEN -1.5%), KB Home (KBH -1.8%), PulteGroup (PHM -1.4%), D.R. Horton (DHI -1.1%), Ryland (RYL -1.5%), NVR (NVR -1.1%), Standard Pacific (SPF -1.1%).
HOV vs. ETF Alternatives
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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