Hovnanian Enterprises Q4 Profit Surges On Non-cash Tax Benefit - Quick Facts

(RTTNews) - Hovnanian Enterprises Inc. (HOV) reported that its net income for the fourth quarter of fiscal 2014 surged to $322.5 million or $1.95 per share, from $32.8 million or $0.21 per share in the same period of the previous year.

A non-cash tax benefit of $285.1 million from the reduction of the Company's valuation allowance for its deferred tax assets was included in net income for the latest-quarter.

Deliveries, including unconsolidated joint ventures, were 1,916 homes during the fiscal 2014 fourth quarter, a 5.5% increase compared with 1,816 homes in last year's fourth quarter.

Total revenues were $698.4 million, an increase of 18.0% compared with $591.7 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share and revenues of $646.77 million for the quarter. Analysts' estimates typically exclude special items.

"We began fiscal 2015 on a much better note. Going forward, we are focused on growing our revenues so that we will be able to leverage our fixed SG&A and interest costs, which would help drive increased profitability. We continue to believe the housing industry remains in the early stages of a recovery. Improving demographic and employment trends should result in a more robust housing market that returns both national housing starts and sales pace per community to normalized levels," said Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer.