Reported Q: Q4 2024 Rev YoY: +10.4% EPS YoY: +1.2% Move: +80.00%
Hovnanian Enterprises Inc
HOVVB
$189.00 80.00%
Exchange OTC Sector Consumer Cyclical Industry Residential Construction
Q4 2024
Published: Dec 18, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for HOVVB

Reported

Report Date

Dec 18, 2024

Quarter Q4 2024

Revenue

979.64M

YoY: +10.4%

EPS

-19.22

YoY: +1.2%

Market Move

+80.00%

Previous quarter: Q3 2024

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Earnings Highlights

  • Revenue of $979.64M up 10.4% year-over-year
  • EPS of $-19.22 increased by 1.2% from previous year
  • Gross margin of 20.8%
  • Net income of 94.35M
  • "We are shifting to a greater land-light. It's always been part of our strategy. It's becoming even more of our strategy." - Ara Hovnanian
HOVVB
Company HOVVB

Executive Summary

Hovnanian Enterprises reported a solid fourth quarter of fiscal 2024, with revenue of $979.6 million and modestly elevated gross margins of around 20.8%, driven by a robust order environment and a strategic shift toward pace over price amid a higher-cost incentives regime. The company generated $115.8 million of operating cash flow and $111.4 million of free cash flow, underpinning a liquidity position of roughly $338 million and a net debt reduction that supports the pivot to growth. Management emphasized a deliberate move to a more land-light model (increasing reliance on QMIs and options-based land control) to sustain EBIT ROI and ROE, even as gross margins are expected to dip in the near term due to mortgage-rate buydowns and incentives. Q4 orders surged, with contracts up 48% year over year and contracts per community at 10.4, reflecting a strengthening demand backdrop despite hurricane disruptions late in the year. For 2025, the company guided first-quarter revenue of $650–$750 million with an adjusted gross margin of 17.5–18.5% and an EBITDA range of $55–$65 million, signaling continued emphasis on throughput and returns rather than margins alone. The overarching thesis is that Hovnanian is leveraging a disciplined growth strategy—land-light, QMI-driven inventory turns, and Looks home designs—to deliver double-digit delivery growth while gradually improving ROE and cash-generation metrics as the balance sheet remains under pruning. Investors should weigh the near-term margin pressure against the optionality of uplift as mortgage rates evolve and the Looks/QMI framework matures into higher-backlog-to-sales conversion.

Key Performance Indicators

Revenue
Increasing
979.64M
QoQ: 35.55% | YoY: 10.44%
Gross Profit
Decreasing
204.17M
20.84% margin
QoQ: 48.38% | YoY: -4.15%
Operating Income
Increasing
116.49M
QoQ: 127.40% | YoY: 108.44%
Net Income
Decreasing
94.35M
QoQ: 29.39% | YoY: -3.00%
EPS
Increasing
13.84
QoQ: 30.44% | YoY: 1.24%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 686.47 2.43 -3.1% View
Q1 2025 673.62 3.58 +13.5% View
Q4 2024 979.64 -19.22 +10.4% View
Q3 2024 722.70 9.75 +11.2% View
Q2 2024 708.38 6.66 +0.7% View