By In the fiscal first quarter, Hovnanian showcased impressive results with a significant increase in both earnings and revenue. This growth can be attributed to the growing demand for new homes in the market.
Financial Performance
- Profit: Hovnanian reported a profit of $23.9 million, or $2.91 per share, compared to $18.7 million, or $2.26 per share, in the same quarter last year.
- Revenue: Quarterly revenue surged to $594.2 million from $515.4 million in the previous year.
Rising Demand for New Homes
According to Chairman Ara Hovnanian, the demand for new homes has been robust in recent months, resulting in a remarkable 48% growth in consolidated contracts per community during the first quarter. This surge in demand can be attributed to various factors such as decreasing mortgage rates, limited availability of existing homes for sale, positive signals from the job market, and overall economic growth.
Future Outlook
Looking ahead, Hovnanian is optimistic about its performance and has provided revenue guidance of $675 million to $775 million for the fiscal second quarter. With a strong start to the year, the company is well-positioned to capitalize on the increasing demand for new homes.
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