Why Hovnanian Enterprises Shares Are Sliding Today
Portfolio Pulse from Lekha Gupta
Hovnanian Enterprises reported Q2 FY23 revenue of $703.7 million, a slight increase from $702.5 million a year ago. However, homebuilding gross margin percentage contracted to 17.8% from 23.3%, and EPS declined to $4.47 from $8.39. The company expects Q3 FY23 revenues of $630 million-$730 million and adjusted EBITDA of $85 million-$95 million.
May 31, 2023 | 3:24 pm
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Hovnanian Enterprises' Q2 FY23 revenue increased slightly, but EPS declined significantly. Shares traded lower by 14%.
Hovnanian Enterprises reported a slight increase in revenue, but a significant decline in EPS, which negatively impacted the stock price. The contraction in homebuilding gross margin percentage and the decline in adjusted EBITDA also contributed to the negative sentiment, resulting in a 14% drop in share price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100