NEW YORK (TheStreet) -- Shares of Hovnanian Enterprises (HOV) are falling by 13.88% to $2.73 in mid-morning trading on Tuesday, after the home builder reported its 2015 second quarter earnings results, which fell short of analysts' expectations.
For the most recent quarter Hovnanian posted a loss of 13 cents per share, wider than the loss of 5 cents per share the company reported in the 2014 second quarter.
Analysts polled by FactSet had forecast for a loss of 6 cents per share for the latest quarter.
Total revenue grew by 4.2% year-over-year to $468.9 million, however analysts had anticipated for revenue of $535 million.
Hovnanian mentioned that during its first quarter conference call the company said it expected its second quarter gross margin to be negatively impacted by incentives and concessions on started unsold homes.
"However, the impact was greater than we anticipated and we are disappointed with our second quarter results," Hovnanian CEO Ara Hovnanian said in a statement.
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 number of negative factors, 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 poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."
You can view the full analysis from the report here: HOV Ratings ReportHOV data by YCharts