Hovnanian 3Q profit tops Wall Street's view on more home deliveries, revenue misses

MarketsAssociated Press

Hovnanian's fiscal third-quarter net income more than doubled as it delivered more homes.

The homebuilder earned $17.1 million, or 11 cents per share, for the three months ended July 31. A year ago it earned $8.5 million, or 6 cents per share.

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Analysts, on average, expected earnings of 9 cents per share, according to a FactSet survey.

Revenue for the Red Bank, New Jersey company climbed 15 percent to $551 million from $478.4 million, but fell short of Wall Street's forecast of $563 million.

Home deliveries increased 3.1 percent to 1,549 homes. This included unconsolidated joint ventures.

Chairman, President and CEO Ara K. Hovnanian said in a statement on Thursday that Hovnanian Enterprises Inc. expects to be profitable for fiscal 2014, assuming no change in current market conditions. The company believes the housing market is still in the early stages of its recovery.

Hovnanian's stock added 7 cents to $4.27 in midday trading.