Before today's market open, the Red Bank, NJ-based builder of residential homes reported a loss of 11 cents per share, wider than the loss of 3 cents per share that analysts had expected.
The loss widened by one cent from the same quarter last year on land charges related to the company's exit from the Minneapolis, MN market.
Revenue increased by 29.1% to $575.6 million year-over-year, but fell short of analysts' estimates of $580.3 million.
"Rather than focusing on additional revenue growth beyond 2016, we now plan to focus on deleveraging our balance sheet and maximizing our profitability," CEO Ara Hovnanian said in a statement this morning.
As part of that strategy, the company said it will also exit the Raleigh, NC market and wind down operations Tampa, FL and the San Francisco Bay Area after delivering the remaining homes in its existing communities.
"We are confident these decisions will lead to continued efficiencies and ultimately improved financial performance," Hovnanian added.
For fiscal 2016, the company forecasts revenue of $2.7 billion to $3.1 billion, in line with Wall Street's projections of $2.8 billion.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
This is driven by several weaknesses, which 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 covered.
The company's weaknesses can be seen in multiple areas, such as its deteriorating 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.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: HOVHOV data by YCharts