Hovnanian Grosses $1B for Q3

RED BANK, NJ-National homebuilder Hovnanian Enterprises, based here, reported net income of $86.7 million, or $1.33 per fully diluted share, on $1.1 billion in total revenue for the third quarter ended July 31. Last year’s Q3 net was $68.8 million, or $1.06 per fully diluted share, on total revenue of $848.8 million.

The company also reports that the dollar value of net contracts increased by 34% in the Q3 to $1.3 billion, from $967 million a year ago. And consolidated earnings before interest expense, income taxes, depreciation and amortization for the quarter rose 32% to $178.8 million from $135 million for the same period last year.

“Our growth in earnings and the increase in the dollar value of our quarterly net contracts demonstrate the healthy demand for new homes and the underlying strength of our business,” says Ara K. Hovnanian, the company’s president/CEO. “There is underlying strength of demand for housing, driven by household formation. As the economy continues to improve, we expect demand for new homes in our markets to remain strong, driven in part of accelerating job growth on top of the underlying fundamental demand for housing.”