Red Bank, NJ, March 3—-Homebuilder Hovnanian Enterprises reported earnings for the first quarter that were up 41 percent over the previous year. The company also boosted expectations for second-quarter and full-year results.
The conpany’s net income in the quarter rose to $81.5 million, or $1.25 per share. Revenue rose to $1.06 billion from $775.2 million.
Analysts had called for $1.20 per share for the quarter.
The dollar value of net contracts at Hovnanian increased 13 percent in the quarter to $1 billion on 3,240 homes.
Deliveries rose to 3,266 homes from 2,901 homes a year ago.
At Jan. 31, backlog stood at 7,803 homes, up from 6,554 at the same time a year ago. The sales value of contract backlog was $2.7 billion, an increase of 50 percent.
Hovnanian said demand for housing in its markets "far outstrips the supply," and the company is confident the demand "will support our growth strategies, even if mortgage rates increase modestly."
The company said it now expects to earn more than $6.85 per share in 2005, including the 10 cent per share accretion expected from the acquisitions of Cambridge Homes and Town & Country Homes, announced over the past two days. In January, the company predicted it would earn more than $6.50 per share for fiscal 2005.
The company forecast second-quarter earnings of $1.60 per share, up from $1.06 per share a year ago.
Analysts expect the company to report earnings of $1.52 for the second quarter and $6.62 for the full year ending in October.
