Hovnanian Misses Street; Shares Drop

RED BANK, N.J. (TheStreet) -- Hovnanian(HOV Quote) shares lost more than 14% Thursday morning, following the homebuilder's dismal third-quarter report, issued after the closing bell Wednesday.

The results were perhaps a bit sobering for investors after a series of economic data points had suggested some improvement in the housing market.

As for Hovnanian, the expectations miss has pressured the company's stock. Before the open of the regular session Wednesday, the shares were changing hands at $3.99, down 66 cents, or 14.2%, on heavy volume.

In the just-ended fiscal third quarter, Hovnanian said it lost $2.16 a share, far more red ink than Wall Street analysts were anticipating. On average, they had put Hovnanian's quarterly deficit at $1.52 a share.

Still, that was a narrower loss than the comparable period a year ago, when the company's bottom line showed a loss of $203 million, or $2.67 a share.

The company's revenue in the quarter plunged 45% to $387 million.

Sector peer Toll Brothers(TOL Quote) said last weak that it saw "signs of optimism" in the homebuilding business even as it bled losses and recorded a 42% decline in revenue.