Hovnanian's stock rallies after results show improved gross margin percentage
Shares of Hovnanian Enterprises Inc. rallied 1.5% in early morning trade Thursday, after the home builder reported fiscal fourth-quarter gross margin percentage that improved, and profit and sales that fell less than some analysts had expected. Net income for the quarter to Oct. 31 declined to $11.8 million, or 8 cents a share, from $22.3 million, or 14 cents a share, in the same period a year ago. Revenue decreased 10% to $721.7 million. The average of two analysts surveyed by FactSet was for earnings per share of 1 cent and revenue of $594.3 million. Sales of homes fell to $666.8 million from $777.5 million, while homebuilding gross margin percentage improved to 13.7% from 13.0%. Hovnanian's stock has lost 0.5% year to date, while the iShares U.S. Home Construction ETF has climbed 57% and the S&P 500 has rallied 20%.
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