Red Bank, NJ, May 31, 2006—Home builder Hovnanian Enterprises reported earnings for its fiscal second quarter that fell 2.3% from the year-earlier period.
The company said quarterly net income totaled $103.6 million, or $1.55 a share, compared with $106.1 million, or $1.62 a share the previous year.
Hovnanian, the seventh-largest house builder by 2005 deliveries, said revenue was $1.57 billion versus $1.21 billion in the year-ago quarter.
Analysts has forecast earnings of $101.7 million, or $1.43 a share, on sales of $1.35 billion.
In early May the company lowered its second-quarter estimate to a range of $1.40 to $1.50 a share, while the fiscal 2006 forecast dropped to between $7.20 and $7.40 a share. Hovnanian cited production delays, slower sales, material-price increases and other factors.
Last week two large builders Toll Brothers and Ryland Group knocked down their profit outlooks for 2006.
Other builders have reported declining home orders this earnings season as inventories of homes for sale pile up and mortgage rates move higher. Analysts are concerned the use of incentives to move homes could hit profit margins down the line, and cancellations are also bumping up.
