Hovnanian Enterprises Q3 Profit Down - Quick Facts

(RTTNews) - Hovnanian Enterprises Inc. (HOV) reported that its third quarter of 2013 net income declined to $8.5 million or $0.06 per share, from $34.7 million or $0.25 per share, in the third quarter of fiscal 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items. The prior year result included a $36.5 million income tax benefit and $6.2 million gain on extinguishment of debt.

Pre-tax income for the fiscal 2013 third quarter was $11.0 million, excluding land-related charges and gain on extinguishment of debt, compared to a pre-tax loss of $7.4 million in last year's third quarter.

Total revenues for the third quarter were $478.4 million up 23.6% from $387.0 million in the third quarter of the prior year. Eight analysts had consensus revenue estimate of $504.70 million for the quarter.

"Our emphasis on raising home prices combined with concerns over rising mortgage rates and weakened consumer confidence dampened our home sales during July and August of 2013. We believe we are in a period where consumers are adjusting to current home prices and mortgage rates and remain confident that the combination of pent-up housing demand and the positive long-term demographic trends for housing will drive increased demand for new homes going forward. We continue to project profitability for the full fiscal 2013 year and strong results for our fourth quarter, excluding any expenses related to early retirement of debt," said Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer.