For its fiscal first quarter that ended in January Hovnanian posted a loss of 17 cents a share. That's 13 cents worse that the Capital IQ Consensus Estimate which called for a loss of 4 cents a share for the quarter. Revenue rose 1.6% from the year-ago period to $364 million for the quarter, missing analysts' estimates of $410.32 million.
"While our first quarter is always the slowest seasonal period for net contracts, the strong recovery trajectory from the spring selling season of 2013 has softened on a year-over-year basis," company chairman, president, and CEO Ara K. Hovnanian said in a press release. "Net contracts in the months of December, January and February have not met our expectations. In addition to the lull in sales momentum, both sales and deliveries were impacted by poor weather conditions and deliveries were further impacted by shortages in labor and certain materials in some markets that have extended cycle times."
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TheStreet Ratings team rates HOVNANIAN ENTRPRS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HOVNANIAN ENTRPRS INC (HOV) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including relatively poor performance when compared with the S&P 500 during the past year and poor profit margins."