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Hovnanian Previews Strong Second-Quarter Contracts

New contracts rise 45%, while their dollar value jumps 62%.
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Homebuilder

Hovnanian

(HOV) - Get Hovnanian Enterprises, Inc. Class A Report

previewed a second quarter Wednesday that showed few signs consumers are curbing their appetite for real estate.

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For the quarter ended April 30, Hovnanian said new contracts rose 45% from a year ago to 4,911 homes, while the dollar value of the additional contracts rose 62%. In April alone, new contracts rose 39% to 1,520, while the dollar value rose 58%.

Hovnanian said the sales value of its contract backlog was $2.4 billion, up 69% from a year ago, while the number of new homes in contract backlog rose 52% from last year to 8,092. The company delivered 3,373 homes during the second quarter, an increase of 35% over the 2,507 homes delivered a year ago.

Order increases at Hovnanian and other homebuilders haven't been enough to allay investor concerns about their stocks' performance in a rising interest rate environment. Hovnanian closed Tuesday at $35.88, about midway between its 52-week range of $19.29-$48.49, but down from the $43 range where it traded in mid-March after splitting its stock 2-for-1.