Red Bank, NJ, February 22, 2006--Homebuilder Hovnanian Enterprises Inc., said its first-quarter net profit would meet or slightly exceed its previous forecasts of $1.10 per share to $1.25 per share.
According to preliminary results, Hovnanian said first-quarter net contracts rose 11.9 percent, while the value of the contracts rose 22 percent. The backlog of homes in contract grew 81 percent while home closings rose to 3,845 from 3,266 a year ago.
Analysts on average had forecast earnings per share at $1.23, according to Reuters Estimates.
"Market conditions remain somewhat slower than the very strong sales environment experienced in these markets earlier in 2005 and 2004," the company said.
Hovnanian is scheduled to report earnings on March 1, but released preliminary figures before an appearance by management at an investor conference.
