Hovnanian Enterprises swung to a third-quarter loss as it continues to navigate a challenging housing market, plagued by steep rates and soft consumer sentiment.
The home builder on Thursday posted a loss of $1.8 million for its three months ended July 31, compared with a profit of $16.6 million a year earlier. On a per-share basis, the company reported a loss of 70 cents a share, compared with earnings of $1.99 a share the year prior.
Total revenues fell 12% to $705.7 million. Home-building gross margin percentage, before cost of sales, interest expense and land charges, was 14.6%, down from 17.3% in the prior-year's third quarter.
The company faces ongoing headwinds from high mortgage rates and weakening buyer demand, which have pressured profitability across the homebuilding sector.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing