NEW YORK (TheStreet) -- Hovnanian Enterprises (HOV - Get Report) stock is rising 3.80% to $1.78 on heavy trading volume on Friday after the company reported earnings that beat estimates for the fiscal 2015 fourth quarter. Revenue fell short of estimates.

Before the market open this morning, the residential construction company posted earnings of 16 cents per share for the quarter ended October 31, beating estimates by 7 cents.

Revenue declined 0.7% year-over-year to $693.2 million for the quarter, missing estimates of $739.5 million.

The value of net contracts increased 28.7% to $684.3 million during the fourth quarter with a 20.7% rise in number of net contracts.

Additionally, Hovnanian Enterprises reported a loss of 11 cents per share on $2.15 billion in revenue for the 2015 fiscal year, while analysts had estimated a loss of 17 cents per share on $2.19 billion in revenue.

The company's contract backlog increased 49% to $1.35 billion as of October 31.

So far today, 2.64 million shares of Hovnanian Enterprises had exchanged hands, compared with its average daily volume of 2.23 million shares.

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 multiple 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

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