Hovnanian Enterprises, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Hovnanian Enterprises, Inc. (NYSE:HOV), a leading national homebuilder, released its financial results for the fourth quarter and fiscal year ended October 31, 2024. The earnings report indicates growth in several key financial metrics and operational highlights.
Key Financial Metrics
| Metric | Q4 FY2024 | Q4 FY2023 | YoY Change | FY2024 | FY2023 | YoY Change |
|---|---|---|---|---|---|---|
| Total Revenue | $979.6 million | $887.0 million | +10.4% | $3.00 billion | $2.76 billion | +9.0% |
| Net Income | $94.3 million | $97.3 million | -3.1% | $242.0 million | $205.9 million | +17.6% |
| Earnings Per Share (EPS) | $12.79 | $13.05 | -2.0% | $31.79 | $26.88 | +18.3% |
The company's revenues increased by 10.4% year-over-year in the fourth quarter, amounting to $979.6 million, with a 9.0% increase for the full year. Despite a slight decline in quarterly net income compared to last year, the full-year net income saw a significant increase of 17.6%.
Revenue Performance by Segment
| Segment | Q4 FY2024 Revenue | Q4 FY2023 Revenue | YoY Change |
|---|---|---|---|
| Sale of Homes | $927.5 million | $829.7 million | +11.8% |
| Domestic Unconsolidated Joint Ventures | $141.7 million | $144.0 million | -1.6% |
The sale of homes segment experienced robust growth, showcasing an 11.8% increase in revenue compared to the previous year's fourth quarter. However, the revenue from domestic unconsolidated joint ventures saw a minor decline of 1.6%.
Operational Highlights
- Full year income before income taxes rose by 24% year-over-year.
- Consolidated contracts increased by 44% year-over-year in the fourth quarter.
- Total controlled consolidated lots increased by 32% year-over-year as of October 31, 2024.
- Land and land development spending hit a record high, with a 45% increase in the fourth quarter compared to the previous year.
Comments from Management
Ara K. Hovnanian, Chairman, President, and CEO, highlighted the strategic focus on growth over debt reduction for fiscal 2024. The company increased its lot count by 32% and community count by 14%, anticipating delivery growth exceeding 10% annually in the coming years. He noted a strong consumer demand despite high mortgage rates, citing an increase in quarterly contracts as evidence of robust market conditions.
Financial Guidance & Market Response
Hovnanian provided guidance for the first quarter of fiscal 2025, expecting total revenues between $650 million and $750 million and adjusted EBITDA between $55 million and $65 million. Specifics on any stock price movement following the earnings release and information on dividends or share repurchase programs were not included in this report.
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