Red Bank, NJ, September 7, 2006--Homebuilder Hovnanian Enterprises reported that earnings, orders and margins all declined in its most recent quarter compared with a year earlier, underscoring the slowing housing sector.
The results, however beat the average of analysts' estimates and the company did not cut its forecast for the year. Shares rose 4 percent in after-hours trading.
For the fiscal third quarter ended July 31, Hovnanian said net income available to common shareholders fell to $74.4 million, or $1.15 per share, from $116.1 million, or $1.76 per share, a year earlier.
The results were in line with the company's previously lowered forecast of $1.10 per share to $1.20 per share, which was the second time the company lowered its forecast for the quarter.
Third-quarter 2006 results included $11.4 million of charge-offs associated walking away from option deposits on land and $800,000 in write-downs associated with land the company owns.
Analysts on average expected Hovnanian to post quarterly earnings of $1.10 per share.
Hovnanian maintained its previously reduced forecast of a profit of $5 per share to $5.75 per share.
