NEW YORK (TheStreet) -- Hovnanian Enterprises (HOV) - Get Report stock is falling 2.55% to $1.91 on Wednesday morning after the homebuilder reported its fiscal 2015 third quarter earnings results today that fell short of analysts' estimates.
For the latest quarter, the company reported a loss of 5 cents a share on revenue of $540.6 million.
Analysts had expected Hovnanian to report a loss of 1 cent a share on revenue of $611.95 million.
In the same quarter the previous year, the company earned 11 cents a share on revenue of $551 million.
"While we are disappointed with the loss for the third quarter, it was within the guidance we gave on our second quarter conference call," CEO Ara K. Hovnanian stated.
Despite the earnings miss, in the recent quarter, the dollar value of the contract backlog grew 23% year-over-year, the company added.
Looking ahead, revenue for the fourth quarter of fiscal 2015 is expected to be about $745 million, and for the full year revenue is forecast to be in the range of $2.7 billion to $3.1 billion.
Separately, TheStreet Ratings team rates HOVNANIAN ENTRPRS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HOVNANIAN ENTRPRS INC (HOV) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
You can view the full analysis from the report here: HOV Ratings Report